February 9, 2012

Chinese inflation jumps to 4.5%

China’s consumer prices rose at a faster-than-expected rate of 4.5% in January from the year-ago period as spending jumped during the Chinese Lunar New Year holiday season, breaking a five-month softening trend and forcing a market rethink of policy easing expectations.

Provided January's jump higher does not turn into a trend, many economists expect inflation in February to soften and continue the pattern through 2012 to come in below 4 percent for the year as a whole, allowing Beijing to maintain a gradual, targeted easing of monetary and fiscal policy.

No comments: