PPI and CPI Insights

Shenwan Hongyuan:

Inflation’s “K-shaped recovery” continues, with PPI’s return to positive territory potentially slower than market expectations. The delay is due to the impact of capacity utilization rates, with November projected for PPI’s year-on-year positive shift.

Galaxy Securities:

June core CPI saw a moderate rise, and PPI improvement requires policy support. Falling food prices, except pork, led to a month-on-month decline in CPI. Three main factors for continued mild inflation rise in the second half: rising pork prices, low base effect, and accelerated policy efforts.