China: CPI records first decline in eight months - BBH

Research Team at BBH, notes that China’s headline inflation CPI was softer than expected with a 2.0% increase year-over-year, down from 2.3% in April. 

Key Quotes

“It is the first decline in eight months.  It is the lowest since January, and reflects the easing of the spike in food prices.  Food price inflation fell to 5.9% from 7.4%, while non-food prices were flat at 1.1%. 

Separately, producer price deflation continues to moderate.  In May, it stood at -2.8% after April's -3.4%.  It is the least producer price deflation since November 2014 and it is the fifth consecutive month of improvement.   The last positive print of Chinese PPI on a year-over-year basis was in January 2012.”