The Producer Price Index is forecast to again be negative with an annual reading of minus 1%, slightly stronger than the 1.4% contraction in February.įor the idea of a strengthening Chinese economy to take hold, inflation will have to start accelerating otherwise it will look like consumers are reluctant to spend which is not what the government led by President Xi Jinping wants us to believe.Ĭhina’s trade figures have not lived up to the bullishness of the economic re-opening. The China re-opening story as a driver of western markets, especially commodities, has faded as the March quarter ended as it became clear that while activity has rebounded, consumer spending especially remained hesitant.Įconomists forecast a rise in month-on-month inflation from February’s surprise fall which would take the annual rate to 2% from 1% the previous month. The US data will show an easing but at a still too high a pace ( see separate story), the Chinese data will be lower than the US but show a sluggish pace of price and economic growth.Īfter March’s monthly inflation data China’s trade figures on Thursday will be further analysed for any confirmation that the re-opening is responding to rising demand for exports offshore, and imports within the huge Chinese domestic economy. Tomorrow sees the release of US CPI figures and the PPI a day after. Later today China’s March Consumer Price Index (CPI) and Producer Price Index (PPI) data will be released. March inflation reports for the world’s two biggest economies come to the fore today and tomorrow as the tensions from March’s brush with a major banking crisis continue to ease.
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