Standard Chartered analysis team suggest that China’s falling producer price index (PPI) has caught the market’s attention as PPI inflation fell to 0.1% y/y in February 2019, on the verge of sliding into negative territory, after peaking at 6.9% y/y in September 2017. Key Quotes “As PPI inflation falls, industrial profit growth is also slowing. The People’s Bank of China’s (PBoC’s) Q1 survey on 5,000 large industrial companies suggests that corporate confidence is weakening y/y and destocking pressure is building. Moreover, if falling PPI inflation drives a further slowdown in China’s nominal GDP growth (which slowed to 9.1% in Q4-2018 from 10.7% in Q4-2017), the PBoC is likely to face increased pressure to ease monetary policy and cut interest rates.” “We expect moderate PPI deflation of 1% in 2019, recovering to inflation of 0.5% in 2020 (versus 3.5% in 2018). Negative base effects are likely to keep headline PPI in moderate deflation for most of 2019. We expect y/y PPI to bottom out at c.-2% in September, recovering to positive figures in early 2020.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Fed’s Harker: My forecast shows inflation coming up to 2.1-2.2% this year FX Street 4 years Standard Chartered analysis team suggest that China's falling producer price index (PPI) has caught the market's attention as PPI inflation fell to 0.1% y/y in February 2019, on the verge of sliding into negative territory, after peaking at 6.9% y/y in September 2017. Key Quotes "As PPI inflation falls, industrial profit growth is also slowing. The People's Bank of China's (PBoC's) Q1 survey on 5,000 large industrial companies suggests that corporate confidence is weakening y/y and destocking pressure is building. Moreover, if falling PPI inflation drives a further slowdown in China's nominal GDP growth (which slowed to 9.1% in Q4-2018… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.