Search ForexCrunch

Analysts at TD Securities note that  China’s January CPI came in at +1.7%/y and was below the market estimate of +1.8%/y while PPI was also disappointing at +0.1%/y, compared to an estimated +0.3%/y.

Key Quotes

“With CPI and PPI coming in below expectations, the market’s focus is shifting towards the prospect of deflation returning.”

“Data so far has indicated that activity is slowing and with the risk of depressed corporate earnings, China’s demand for imports could fall.”