China’s latest CPI and PPI data point to early reflation and a potential shift away from deflationary sentiment, says Lynn Song of ING. He notes March PPI turned positive for the first time since 2022, driven by higher energy prices linked to the Middle East conflict, with producer price gains likely to feed into broader inflation and support efforts to curb price competition. CPI eased in line with post-Lunar New Year seasonality, though the softness may be temporary, as higher energy costs con

China’s latest CPI and PPI data point to early reflation and a potential shift away from deflationary sentiment, says Lynn Song of ING. He notes March PPI turned positive for the first time since 2022, driven by higher energy prices linked to the Middle East conflict, with producer price gains likely to feed into broader inflation and support efforts to curb price competition. CPI eased in line with post-Lunar New Year seasonality, though the softness may be temporary, as higher energy costs continue to pass through with further upside expected.