In China, we received both CPI and PPI data for January. The numbers showed Chinese consumer prices fell by 0.8% y/y (expectations: -0.6% y/y). That marks the fourth month in a row with a negative print y/y. The negative Chinese inflation is however to a large degree driven by lower food prices (food prices were down 5.9% y/y in January). We thus see that core CPI (CPI ex food and energy) remains in positive territory at 0.4% y/y. Hence, we do not see any broad-based deflation in China. The lower food prices are also helpful in terms of stimulating Chinese private consumption, as they ease living costs and improve purchasing power for Chinese consumers. Producer prices fell 2.5% y/y in January (prior: 2.7% y/y).