lowtrade

[Jaxon2010]

From Dent Weekly. I thought you would be interested bud.

Chinese Inflation Flat While Producer Price Index (PPI) Drops… The Chinese consumer price index (CPI) was flat over last month and up 1.4% over the same time last year. Inflation at the wholesale level as measured by PPI slipped 0.4% for the month and fell 4.8% over last year.

What it means – The official inflation target rate is 3%, so clearly 1.4% is well below what the Chinese government wants to see. More troubling is the continued drop in PPI. The measure has marched lower 40 consecutive months, led by ferrous metals. This implies that construction is still in the deep freeze and casts even more doubt on the possibility that Chinese GDP will reach the official estimate of 7% this year.