Summary

• Both China’s CPI and PPI inflation beat forecasts in April, with producer prices and non-food costs hitting 45-month highs.
• Yet the full economic impact of higher energy prices is likely yet to be seen.
• We saw in the weekend data that China's trade growth beat expectations again in April, with both exports and imports surpassing market forecasts.

By Lynn Song, Chief Economist, Greater China

CPI inflation rebounds in April despite drag from food prices

China's CPI inflation rose to 1.2% year-on-year in April, up from 1.0% in March, bucking market forecasts for a slight drop on