Now it’s China feeding inflation fears

Now it’s China feeding inflation fears

China’s factory-gate prices, the Chinese equivalent of the U.S. Producer Price Index, grew at the fastest pace in 26 years in October. Factory inflation climbed 13.5% year over year, the National Bureau of Statistics reported Wednesday.(Economimsts had projected a 12.3% year over year increase.) Raw material costs continued to soar, with signs that producers are passing on higher costs to consumers. China’s consumer inflation rose by 1.5% in October, the fastest pace since September 20202.

As usual, inflation rate falls in China after the Lunar New Year holiday

Inflation in China rose at only a 2.1% annual rate in March, well below the 2.5% rate expected by economists and even further below the 3.2% annual rate reported for February. Turns out that Lunar New Year holiday spending, which always temporarily raises food costs, was at work again this year. With the passing of February’s holiday period food costs and the inflation rate have dropped back to well below the government’s 3.5% inflation target for 2013.

Why have China’s stocks stopped climbing?

Why have China’s stocks stopped climbing?

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More bad news is good news this morning–now from China

The bad news from China today has been enough to lift Chinese stocks—Hong Kong’s Hang Seng index closed up 1.1% on the news—but it hasn’t been bad/good enough to do the same for Europe. The French CAC 40 was up 0.54% today but the German DAX Index nudged into negative territory with a 0.02% drop. The Spanish IBEX 35 fell 056% and the Italian FTSE Milan Index was down 0.08%.