China: Inflation And Deflation Battle

Econintersect:  Food prices in China rose in May by 4.1% year-over-year, pushing the overall CPI (Consumer Price Index) up by 2.5%.  This was the highest level of inflation in four months and was slightly above estimates.  CPI rebounded from an 18-month low of 1.8% in April.  Producer prices (PPI) contracted year-over-year for the 27th consecutive month, declining by 1.4% year-over-year.  This was a slower rate of deflation than the 2.0% in April.  But the deflation rate in May was similar to what was seen in much of the second half of 2013.