For the 47th month in a row, China’s Producer Prices have fallen year-over-year – a record deflationary streak. CPI rose 2.3% YoY – the fastest pace since May 2014 (against expectations of a 1.8% rise in consumer prices, and at the upper end of the +1.5% to +2.4% range). PPI printed as expected with a 4.9% YoY plunge in producer prices (-4.5% to -5.5% range). However, what is most disturbing – from both a social unrest and economic-stimulus-hope basis, is that Food prices exploded 7.3% YoY – the most in 4 years.