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G Sachs Lifts CN CPI/ PPI Forecasts for 2026 to 0.8%/ 0.3%
2026-03-09 17:41:33
China's headline Consumer Price Index (CPI) YoY increase expanded from 0.2% in January to 1.3% in February, on the ride of rising food prices and tourism-related service prices, Goldman Sachs said in its research report. This was largely driven by the later-than-usual Lunar New Year holiday. The Producer Price Index (PPI) YoY decline narrowed from 1.4% in January to 0.9% in February, mainly influenced by high non-ferrous metal prices.

Taking into account the February data and the energy price hike amid the blockage of the Strait of Hormuz, the broker revised up its full-year CPI and PPI inflation forecasts for 2026 to 0.8% and 0.3% respectively (originally expected to rise 0.6% and fall 0.5%), propelled by stronger sequential price gains in 1Q and 2Q. According to the revised forecast path, the PPI YoY upswing may turn positive as early as the beginning of 2Q26.
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