Chinese CPI meeting expectations despite much higher exports and imports levels

China’s Consumer Price Index (CPI) rose 2 percent in January from a year ago, largely in line with market consensus. The nation’s Producer Price Index (PPI) fell 1.6 percent in the month year-on-year, also as expected.

The figures show inflation easing from December’s seven-month high, with most economists seeing price pressures bottoming out in January.

China’s inflation has fallen steadily from a three-year peak of 6.5 percent in July 2011 in response to a series of policy tightening steps and weakening economic activity.

The central bank has said that China’s inflation trend is stable, but the country needs to guard against imported price pressures stemming in part from ultra-loose U.S. monetary policy.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.