China Inflation likely remained subdued in April

China will release inflation data for April on 9 May. CPI inflation is expected to have inched up to 1.6% y/y from 1.4% in March on a lower base last year. 

Food inflation of 3.2% y/y (versus 2.3% in March), and non-food inflation is expected to have remained unchanged at 0.9% y/y. In m/m terms, inflation likely continued to moderate on muted food prices, especially meat and vegetable prices. 

Producer prices to have fallen by 4.5% y/y and to have continued to slide m/m amid lower metal and energy product prices. 

"We do not expect a turnaround in PPI inflation in the coming months and believe subdued inflation will allow for further monetary policy easing in Q2- and Q3-2015", Says Standard Chartered.