THE BRIEF: Michael Pettis on China's dying economic growth model, Beijing can't pause economic development for long, Canton fair weak, PCAOB inspections

Trying to make sense of things

China’s April CPI and PPI were released yesterday, both ended up below survey expectations. CPI was +0.1% yoy (prior 0.7%). PPI was -3.6% (prior -2.5%). Consumer Goods CPI came in at -0.4%, which indicates possible weaker demand. We’re not sure what’s causing this decline towards CPI deflation. It could be some items pulled it down (automotive fuels was…