CHINESE INFLATION DATA

Published: 9th June 2025 - 10:27am

Chinese CPI data came in at -0.1% compared to forecasted -0.2% showing that inflation eased by less than expected. The May figure of  –0.1% matches April’s and March’s YoY declines with Chinese CPI is broadly flat at around –0.1% YoY. This marks the fourth consecutive month of consumer price decline, underscoring persistent weak domestic demand.


Chinese PPI came in at -3.3% compared to forecasted -3.10% indicating producers are seeing deeper deflation than expected. April’s PPI was –2.7%, hence the May drop to –3.3% is worse than the previous month. May’s 3.3% decline is the sharpest in 22 months, pointing to intensifying price pressures on the manufacturing side.


The Hang Seng index was initially lifted by the CPI surprise, but this move later faded.


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