Chinese CPI disappoints, PPI rises at fastest pace since 2008

Chinese Consumer Price Index for the year 2020 May to May 2021 arrived at 1.3% vs the expected 1.6%; and the previous 0.9%. 

Month on month, the data for May arrived at -0.2% vs the expected -0.1% and previous -0.3%.

Meanwhile, the Chinese Producer Price Index for the same year came in at 9.0% (exp 8.5%; prev 6.8%)

This was the fastest pace of rising since 2008.

China vows to control corn, wheat, pork prices after PPI surge and to keep prices of goods linked to livelihood stable.

Market reaction

There was no reaction in the related currencies, such as the Aussie, as the markets are waiting for the US CPI this Thursday. 

In fact, forex volatility hit its lowest in a year overnight and the US dollar was virtually sidelined.

Traders are treading water ahead of Super Thursday with the European Central Bank and US CPI.