Inflation data from China for December 2023 Very weak numbers, deflation y/y and barely positive m/m. {table} Monthly PPI -0.3%. • prior -0.3%. The point many make (including me) is that inflation is not an impediment to further easing from the People's Bank of China. Which is true but misses the fear over a weaker yuan: Why the People's Bank of China can't ease the economic headwinds away. In that post you'll note I said the PBOC may well be left with no choice but to ease though ... and that's whats expected next week: People's Bank of China rate cut coming up on Monday? Preview. (full story)