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Chinese Producer Prices Tumble For 34th Month In A Row, Worst 'Deflation' Since Oct 2009

For the 34th month in a row, Chinese Producer Prices (PPI) fell YoY (dropping 4.3%, missing expectations of a 3.8% deflation). This is the biggest YoY drop in prices since October 2009 led by a 9.9% plunge in fuel costs. Chinese Consumer Prices are also showing continued deceleration with a 0.8% rise YoY (missing expectations of a 1.0% rise YoY) - the weakest CPI low-flation since November 2009. Great news for the average Chinese person is that food prices rose at the slowest pace in years (and even better the cost of alcohol & tobacco fell YoY again).

 

Producer Price 'Deflation' continues for the 34th month...

 

As Consumer Price 'Lowflation' slides...

 

Of course, this will provide just enough "bad news is good news" headline fodder for the sell-side to once again demand the PBOC cut RRR again and save the world...

 

Charts: Bloomberg