China’s CPI inflation rises by 0.7% YoY in February vs. 0.3% expected

China’s inflation, as measured by the Consumer Price Index (CPI), rose by 0.7% YoY in February from a 0.8% decline in January. The market consensus was for a rise of 0.3%. 

On a monthly basis, Chinese CPI inflation climbed 1.0% MoM in February versus a 0.3% increase seen in January, above the market consensus of 0.7%. 

China’s Producer Price Index (PPI) dropped 2.7% YoY in February, as against a 2.5% decline in January. The data came in weaker than the market expectations for a 2.5% decline in the reported period.

Market reaction

At the time of writing, AUD/USD holds lower ground near 0.6618, down 0.03% on the day.