China’s May CPI seen at lower at 2.9% vs. April’s 3.3% – China Press

Dhwani Mehta FXStreet

Citing Li Chao, Chief Analyst with Zheshang Securities, China’s Securities Times reported that the average May Consumer Price Index (CPI) estimate by 19 Chinese financial institutions was 2.9%, lower than 3.3% in April.

Additional takeaways

“Inflation has continued to ease as pork prices fell from their peak. “

“Lower inflation increased the possibility that the central bank would cut the benchmark interest rates for deposits and also cut rates for Medium-term Lending facilities to lower borrowing costs for companies.”

China’s CPI for May will be released on Wednesday.

USD/CNH bounces from 100-day SMA

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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