Chart: food prices fell sharply in May7 June, 2012, 16:42. Posted by Zarathustra
As most would have known by now that except food, there is not much of an inflation to speak of.
Source: National Bureau of Statistics
So for those who hope that lower inflation in China could open doors for more monetary and fiscal stimulus, this is the chart you should be looking forward to. Bloomberg Brief’sMichael McDonough’s China food prices index is now in negative territory for May, suggesting that the food prices component in CPI could well plunge further.
The closely watched CPI will be out on Saturday. The consensus is currently looking for a 3.2% yoy gain in general price level.