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8 May 2026 

Asia week ahead: China and India release highly anticipated inflation data

The highlights of the week will be inflation reports from China and India as global markets assess fallout from the Middle East. China will also release key trade data

India: Modest rise in inflation expected

India’s inflation is expected to accelerate, but the increase should be modest. Retail gasoline prices are still capped, and core inflation remains contained. Instead, the main driver will be the second‑round effects of higher oil prices on food inflation.

China: Growth in trade expected, while inflation to remain modest

China’s trade data is scheduled for release on Saturday. We expect export growth of around 6.5% and imports to increase by 20.4%, resulting in a trade surplus of $71.6bn. We expect a slight boost in year-on-year trade with the US. Last April marked the escalation of the Liberation Day tariffs and the US-China trade war. Markets will watch whether the data better reflects the impact of higher energy prices. On Monday, China releases its inflation data. We expect the CPI to stay unchanged at 1.0% YoY and PPI to accelerate further to 1.9% YoY.

Key events in Asia next week

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India China