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Chinese Inflation Comes At 5.5% Y/Y, In Line With Expectations, Highest Since 2008

Tyler Durden's picture




 

The Chinese data dump is here.  Just as expected the key May inflation data point out of China came at 5.5% Y/Y, in line with expectations, and higher than 5.3% in April. This is the highest inflation print since 2008 when the economy fell into a deflationary vortex. Other economic data: PPI comes blistering at 6.8%, beating expectations of 6.5%, and in line with 6.8% in April. Industrial production was 13.3%, stronger than the 13.1% expected, and down from 13.4% previously, while retail sales were the only metric that missed, coming at 16.9% Y/Y, below consensus of 17.0%, and lower than 17.1% in April. Fixed Inventory excluding Rural was at 25.8%, on expectations of 25.2% and higher than 25.4% previously. Lastly, on the key topic of electricity output, the print is 377.5 BKW/h up 12% Y/Y: it is unclear whether the energy gap discussed previously will be filled at this rate of growth. Inflation continues to dominate although courtesy of the better than expected Industrial Production calls for stagflation will be more muted this time. Expect to see renewed calls on the PBoC to hike rates imminently.

China CPI:

PPI:

 

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Mon, 06/13/2011 - 22:09 | 1366623 MacHoolahan
MacHoolahan's picture

Having predicted 19 of the last 1 busts - I must admit this is the one I'm waiting for.

Mon, 06/13/2011 - 22:07 | 1366626 Stoploss
Stoploss's picture

Annndd, there go the PM's.

Mon, 06/13/2011 - 22:13 | 1366644 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There are no jobs...er, I mean there is no inflation...go fuck yourself China.  Shit, who changed the teleprompter?

Mon, 06/13/2011 - 23:30 | 1366823 spekulatn
spekulatn's picture

O) ))))))!

Mon, 06/13/2011 - 22:14 | 1366654 masterinchancery
masterinchancery's picture

Try 10%, minimum.  I know people who live in China.

Mon, 06/13/2011 - 22:17 | 1366662 phungus_mungus
phungus_mungus's picture

In line with who's expectations?

 

Ours or their bullshit ones? 

Mon, 06/13/2011 - 22:28 | 1366680 LudwigVon
LudwigVon's picture

Oh it's just the marginal efficiency of capital.

Mon, 06/13/2011 - 22:33 | 1366682 chump666
chump666's picture

It's a nice conjob by the Chinese govt maniacs.  They had a 6.00% CPI floating aorund in their corrupt media, then the Goldilocks 5.5% fudge.  Sent all crosses up, USD sold markets ticked up. 

You are right despite the CPI being fudged, they will but rates up immiediatly, inflation probaly running way over 6%

Tue, 06/14/2011 - 00:52 | 1366927 onarga74
onarga74's picture

It's like the Japanese nuclear misunderstanding...just lie to everyone about what really is going on.  In a month everyone will be watching PeeWee's Republican playhouse debates so who cares?...China's inflation could be 11% but they delivered what people estimated.  The Chinese word for credibility is wingit

Mon, 06/13/2011 - 22:25 | 1366683 Orly
Orly's picture

Meanwhile, back at the ranch, as the Lone Ranger was disguised as Ben Bernanke, the Japanese BSI Manufacturing Index really fell off a cliff.

Expectations of -2.1 to the actual of -23.3.

Holy smokes, Batman!

Mon, 06/13/2011 - 23:23 | 1366803 Re-Discovery
Re-Discovery's picture

. . . which of course verifies the cover story on supply chain disruption.  It's all transitory, because we all know Japan's coming back.  Completely understandable ES would surge.

 

Mon, 06/13/2011 - 22:32 | 1366700 Michael Victory
Michael Victory's picture

Disclaimer: totally unrelated.

Not really, I like this bloke.. Stella.

Vid - $1425 Gold Target.

 

Mon, 06/13/2011 - 22:38 | 1366714 lizzy36
lizzy36's picture

Great news. ES futes up almost 1%

Inflation, as far as the Chinese can manipulate their numbers.

In the mean time....risk on, China story intact!!!!

Perhaps GE or CREE can export some more jobs their tomorrow.

This will end well.

Mon, 06/13/2011 - 22:47 | 1366730 jtmo3
jtmo3's picture

This is like watching a slow motion train wreck and you're in the car. Death of a thousand cuts.
Ya, I'm kind of an impatient guy. Lets quit playing these games and get the show on the road. Geez, this is nuts. It's like a game of who can lie the biggest and best and get away with it.

Mon, 06/13/2011 - 22:50 | 1366738 chump666
chump666's picture

China will 100% crash next 3mths IMO.  They are acting nutso with their stats at the moment.  Everytime the fudge their BS numbers, oil is bid. 

Mon, 06/13/2011 - 22:52 | 1366740 thebuddhastalin
thebuddhastalin's picture

Wow, you guys still doomin' along? I think y'all grossly misunderestimate the ability of politicians to masterfully kick the can down the road, sometimes indefinitely

I came here briefly two years ago and saw much the same DOOOM !!!

Anyways it's all irrelevant, the current slump is just a small-ish soft patch, the US is coming BACK baby, and in a big way!

 

 

 

Mon, 06/13/2011 - 23:06 | 1366764 Crab Cake
Crab Cake's picture

Well you know the saying right? If you meet the "Buddha" on the side of the road, smash him in the face. Do us a favor and take your ignorance, and do not return for another two years.

Tue, 06/14/2011 - 04:22 | 1367104 dellbalboa
dellbalboa's picture

You are a unashamed apologist, Dear ignorant buddha.

 

I would hate to be your teacher, cause two years is a long time, and you have'nt learned a god damned thing,

 

 

US is back? haha, Lol comedian xD

Mon, 06/13/2011 - 23:03 | 1366754 chump666
chump666's picture

Ha! Good ole Godman Sachs saying (on wires) that China inflation is over 6%!  Good stuff, gotta save those commod shorts and risk FX shorts.

haven't got a link sorry, if you got bloomberg machines...search goldman sachs china 6%

Mon, 06/13/2011 - 23:13 | 1366773 Coke and Hookers
Coke and Hookers's picture

At least it's still lower than current US inflation bitchez.   :-)

http://www.shadowstats.com/alternate_data/inflation-charts

Mon, 06/13/2011 - 23:07 | 1366769 Seasmoke
Seasmoke's picture

dont ever trust China.....that about sums it up

Tue, 06/14/2011 - 00:01 | 1366871 hayesy316
hayesy316's picture

I for one welcome our Random Number Generator overlords.

Tue, 06/14/2011 - 00:02 | 1366877 XPolemic
XPolemic's picture

Thanks to a small glitch in the ZeroMatrix, while trying to view this article I discovered that ZH uses Drupal/Pressflow.

I guess that explains a lot.

 

Tue, 06/14/2011 - 01:23 | 1366966 chump666
chump666's picture

wow china burt the shorters again, with fake numbers. 

Tue, 06/14/2011 - 05:28 | 1367142 Paralympic Equity
Paralympic Equity's picture

Yes, the market is on full retarded mode...

Tue, 06/14/2011 - 02:44 | 1367030 Fred123
Fred123's picture

Oh yeah, Chinese citizens are rioting over a 5.5% inflation rate. Lying gov't scumbags.

Tue, 06/14/2011 - 03:41 | 1367084 squexx
squexx's picture

I can't figure out who the bigger liars are. The joo overlords of Wall St. or the commie overlords of China. But I don't think there has been a more evil group ever than jooz!

Tue, 06/14/2011 - 03:48 | 1367089 Paralympic Equity
Paralympic Equity's picture

CHINA RAISES BANK RESERVE REQUIREMENT RATIO

Another 50 bps up...

 

It's like a great dream, all of it. After Greece, China, I just can't wait for the Irish banks bullshit to start...

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