Will China resume tightening?
Simon Ward
Post a Comment
Chinese industrial output may be reaccelerating after a temporary slowdown. Adjusting for seasonal variation, the current and future new orders indices in the Market News International (MNI) business survey rose in September – see first chart.
The rebound has been accompanied by a pick-up in input cost and output price pressures. The MNI current and future prices received indices rose sharply this month, suggesting a reversal of the recent slowdown in producer price inflation – second chart.
The weekly food produce price index, meanwhile, continues to climb, signalling a likely further rise in CPI food inflation from an annual 7.5% in August – see previous post and third chart.
Markets have been partying in anticipation of "QE2". Will the Chinese authorities douse the celebrations?
View Printer Friendly Version
Email Article to Friend
Reader Comments