8 Jul 2014
China's annual inflation expected at 2.3% in June - ING
FXStreet (Łódź) - Tim Condon from ING predicts that China's year-over-year inflation, due out on Wednesday, should come in at 2.3%.
Key quotes
"Since the 1997-98 Asian crisis the food component has been behind big inflation swings."
"We also think the massive monetary easing in 2009-10 boosted non-food inflation, which now is around 1.6% vs. 1.2% before the GFC."
"We think the acceleration would have been far greater had it not been for the outlet provided by asset prices."
"Inflation slowed to 2.2% YoY YTD in May from 2.6% in December, mostly due to a dropin food component inflation."
"Based on our full-year 2.3% forecast (consensus 2.5%) we see the balance of economic risks as tilted toward growth."
Key quotes
"Since the 1997-98 Asian crisis the food component has been behind big inflation swings."
"We also think the massive monetary easing in 2009-10 boosted non-food inflation, which now is around 1.6% vs. 1.2% before the GFC."
"We think the acceleration would have been far greater had it not been for the outlet provided by asset prices."
"Inflation slowed to 2.2% YoY YTD in May from 2.6% in December, mostly due to a dropin food component inflation."
"Based on our full-year 2.3% forecast (consensus 2.5%) we see the balance of economic risks as tilted toward growth."