China June CPI +1.9% y/y (+1.8% expected and +2.0% in May)
For the PPI, -2.6% y/y (-2.5% expected & -2.8% y/y prior)
- The June CPI is the slowest since January of this year, weak demand being cited.
- Food prices were +4.6% in June (+5.9% in May), non-food +1.2% (prior +1.1%)
- The target of r CPI is around 3%
- The June PPI is the smallest since near the end of 2014
- A small rebound in commodity prices cited
The results
- "reflect the downward pressure facing the Chinese economy. It calls for loosening of monetary policy in the second half, such as cuts in the RRR or interest rate." - Bloomberg
- "In our view, while China reiterates the importance of supply-side reform due to debt and overcapacity concerns, the authorities still need to stimulate demand in order to achieve its growth target" - Reuters
Comment from Zhou Hao, a senior economist at Commerzbank AG in Singapore, via both Reuters and Bloomberg.
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ps. You heard it from Mike first: Turnbull nudging ever nearer to victory in the Australian 2016 elections
But confirmed now, Malcolm Turnbull has claimed victory in the Australian election and rival Bill Shorten has conceded defeat. Counting is still continuing, with 5 seats still in doubt.
