Inflation on the move in China

China inflation for January

CPI 2.5% y/y

  • vs. expected 2.4%, prior 2.1%
  • CPI highest since May of 2014

PPI 6.9% y/y

  • vs.expected 6.6%, prior 5.5%
  • PPI 5th consecutive month of higher
  • PPI highest since August 2011

For the m/m rises

  • CPI +1% m/m
  • PPI +0.8% m/m

NBS saying the CPI was boosted by factors related to the Lunar new year holidays

There is a bit of hedging going on with this data too, that it needs to be averaged with the February figure (come back in a month for that, right?) to smooth out new year impacts.

Despite the hedging, I'd think this is more evidence that China will now be exporting inflation impulses (except maybe to Japan, who knows WTH is going on there!)

more to come