Credit Agricole's Kowalczyk Sees 2H Decline in China PPI

The video discusses the diverging trends in Chinese inflation, focusing on CPI and PPI. It highlights the correlation between factory gauges and producer inflation, noting the impact of base effects. The economic outlook suggests a slowdown in growth, with real interest rates rising. Commodities are identified as key drivers of inflation, with food prices affecting CPI. The policy response involves tightening monetary policy and easing fiscal measures to manage inflation and protect the currency.

What is the expected trend for food prices and its impact on inflation?

What policy responses are anticipated in light of the current economic conditions in China?