China's January CPI came in at 1.8% y/y, which is slightly below 1.9% expected, while the PPI was also a tad lower at -5.3% y/y vs -5.4% last. On a mothly basis, Jan figures were flat at 0.5%, in line with both expectations and last. The tepid inflation data in China continues to suggest global deflationary pressures. That said, the recent massive increase in Chinese credit growth should cap downside risks to any significant decline in prices as the PBOC remains focus on stimulating growth in the country rather than deleveraging a highly indebted nation. For more information, read our latest forex news.