China factory prices lift reflation outlook – BBG

Bloomberg reporting key take-aways from the economists, following the release of stronger Chinese PPI data, which surged at the fastest pace since 2008.

Economist Takeaways

Zhou Hao, an economist at Commerzbank AG in Singapore, noted "Why didn’t skyrocketing PPI translate into higher CPI? Because there is no recovery in demand yet."

Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong said, "Everything has peaked in the first quarter -- nominal GDP growth, corporate earnings, PPI inflation. The strong numbers we are seeing now are not sustainable.”