China: CPI ticked up to 1.1% from 0.9% - BBH

Analysts at BBH note that China's CPI ticked up to 1.1% from 0.9% after it was 2.1% at the end of last year.  

Key Quotes

“The subdued price pressures will give officials room to stimulate later this year if needed, and the 0.4% decline in the month-over-month measure of producer prices may warn that it may indeed be needed.  PPI rose 6.4% year-over-year.  The median in the Bloomberg survey expected a 6.7% increase after 7.6% in March.”

“The moderation comes as commodity prices, such as iron ore, steel, and oil retreated.  The government has used the better growth numbers to focus on the credit excesses and to tighten lending to the housing market.  The Chinese yuan is flat.  It is up almost 0.6% against the dollar this year, and for the fourth month, it is in narrow ranges.”