汇丰：中国通胀_生产者物价指数（PPI）面临更大下行压力

Investment Rating - The report indicates a muted inflation environment in China, with a headline CPI of -0.1% year-on-year in April, suggesting a cautious outlook for consumer prices [4][6]. Core Viewpoints - The report highlights the need for a faster pickup in domestic demand to stabilize prices, as external demand faces ongoing challenges [4][10]. - Core CPI remained stable at 0.5% year-on-year, supported by consumption policies, while the headline PPI fell deeper to -2.7% year-on-year due to lower commodity prices [4][9]. Summary by Sections Inflation Overview - Headline CPI showed a slight decline of -0.1% year-on-year in April, with core CPI stable at 0.5% year-on-year [4][6]. - Food prices recorded a narrower decline of -0.2% year-on-year, with pork prices rising modestly by 5.0% year-on-year [5][6]. Producer Price Index (PPI) - The headline PPI fell by -2.7% year-on-year, with significant declines in petroleum and coal manufacturing prices, which dropped by 11.1% year-on-year [9][12]. - The report notes that external demand may face headwinds due to tariff risks, which could further pressure PPI [10][12]. Policy Implications - The National Development and Reform Commission allocated cRMB80 billion to support trade-in programs, indicating a focus on boosting consumption [6]. - The Politburo Meeting emphasized expanding services consumption, with the People's Bank of China planning a RMB500 billion relending program for services and elderly care [6][12].