Inflation in China remains worryingly weak, official producer and consumer price data for May confirmed today.
The CPI was up 0.2% y/y last month, only slightly increased from the 0.1% y/y pace in April.
The producer price index shows that the disinflationary trend is continuing. It has been falling year-on-year for the past eight months, accelerating from 3.6% y/y to 4.6% y/y in May. This is the steepest decline in seven years.
Producer prices are a leading indicator of consumer inflation and the overall economy. The latest data confirms the weakness of the world’s second-largest economy.
The shallow inflation frees the People’s Bank of China to stimulate the economy further by cutting interest rates or putting pressure on the renminbi.
As a result, USDCNH quickly rebounded from the previous day’s pullback to trade back above 7.14, not far from the highs seen since last November.
The FxPro Analyst Team
Bitcoin Cash: ⬇️ Sell - Bitcoin Cash reversed from resistance area - Likely to fall…
EURJPY: ⬆️ Buy - EURJPY reversed from support area - Likely to rise to resistance…
The dollar suffered due to threats to the Fed’s independence. Gold managed to renew its…
Today is Monday, the 12th of January, and once again we will talk about the…
Crypto markets remain volatile; Bitcoin faces selling pressure, XRP slips, Monero surges, and market signals…
CHFJPY: ⬆️ Buy - CHFJPY reversed from support area - Likely to rise to resistance…
This website uses cookies