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China CPI inflation likely to rebound in May - Nomura

Analysts at Nomura offer their insights on the Chinese inflation data for the month of May due to be reported this Saturday at 0130 GMT.

Key Quotes:

CPI: expected 1.8%, prior 1.8%.

PPI: expected 3.9%, prior 3.4%.

“CPI inflation is likely to rebound as high-frequency data suggest some pick-up in food price inflation. 

We expect a continued rise in PPI inflation, partly due to a low base last year and in line with the improvement of price-related subindices in the official manufacturing PMI.“

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