China’s CPI up 2.7%, PPI gain 0.6% in May, broadly within expectations

The Consumer Price Index (CPI) for May was up 2.7% from a year ago, the highest pace since February 2018, China’s National Bureau of Statistics said on Wednesday. The reading was within analysts’ expectations.

Consumer prices and producer prices in China were broadly in line with expectations for the month of May, as the African swine fever drove the prices of pork higher while the rebounding factory prices reflected stimulus support from the Chinese government.

The Consumer Price Index (CPI) for May was up 2.7% from a year ago, the highest pace since February 2018, China’s National Bureau of Statistics said on Wednesday. The reading was within analysts’ expectations.

Food prices rose 7.7% in May from a year ago, while the prices of non-food items rose 1.7%. Pork prices have been consistently high this year due to the Africa swine fever which drove prices up. For last month, pork prices rose 18.2% from a year ago.

Prices of industrial products for the domestic market eased from the previous month, with the Producer Price Index (PPI) up 0.6% in May on a year-on-year basis, aligned with market expectations.

The inflation data comes on the back of a trade war between China and the United States (US). So far, the US had imposed duties on US$250 billion worth of Chinese goods, while Beijing has placed tariffs on US$110 billion in American goods.

US president Donald Trump said on Monday he is prepared to impose additional tariffs on at least US$300 billion worth of Chinese goods after the Group of 20 summit, which is slated to take place on June 28 and 29.

China’s consumer inflation target for this year is at around 3.0%, in the same pace of increase as the previous year.

AUD/USD little changed at US$0.6952

The muted inflation data from Australia’s largest customer led to a lacklustre reaction from the AUD/USD. The Aussie dollar was little changed against the US dollar, as it was down by 0.15% at US$0.6952 from the opening price of US$0.6961, at around 11.30am Hong Kong time, IG data showed.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.