Chinese consumer inflation came in slightly lower than projected year-on-year in April. At the same time, producer prices in the same month registered less-than-expected declines.

The consumer price index (CPI) gained 2.3% year-on-year in April, compared with a 2.4% consensus estimate by economists and in line with March's 2.3% on-year data.

The biggest contribution to consumer price inflation was food prices which rose 7.4% in April when compared to the same month last year.

Acceleration in inflation in pork prices continued to 33.5% year-on-year but the jump was tempered by a slower increase in the price of vegetables, which rose 28.4% year on year.

Policymakers prefer to target consumer price inflation at about 3% compared with Western preference for 2%.

In the meantime, the producer price index (PPI) declined 3.4% year-on-year, a slower rate of decline than in March which a Shinsei Corporate Management analyst suggested showed that deflationary pressures were easing in the world’s second biggest economy.

“Although the CPI number is more or less in line with expectations, the moderation in the slump in PPI will alleviate some concerns about deflationary pressure on PPI that has been weighing on corporate revenue and profits, said the analyst.

Shinsei Corporate Management said that it maintains its overall bullishness on the Chinese economy reiterating its view that it expects growth to appreciate from here despite widely held beliefs that China is set to take another leg down.

“The People’s Bank of China still has tools at its disposal including conventional interest rates so there is plenty of scope for additional stimulus if required,” concluded the analyst.

About Shinsei Corporate Management:
We at Shinsei Corporate Management express our dedicated commitment to the local communities around us and to our loyal clients’ in a variety of different ways.

Helping to realize public orientated projects such as the building of new schools and healthcare centres are a key focus of our core beliefs of what a financial institution should be doing to better our local communities. Assisting with the sale, merger or acquisition of a company that requires a strong partner to lead them safely through treacherous waters. We ensuring the preservation of personal wealth, pension funds and beneficial foundations all get the right level of care and attention the need in order to maintain stability and thrive.