A blog on Chinese economy & society

Bubbling China, 1.9% Dec CPI

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China’s Q4 GDP growth returned to double digit, at 10.7% YOY. However, December CPI was a shocking 1.9%. The market had been expecting around 1.4%, although there had been rumor about a possible surprise on the ugly side that sent the equity market tumbling earlier. Well, I guess this will put en end to all the pretense that inflation is still tame and China can still afford a loose monetary policy to buy some more time. I doubt the rumor has been fully priced in and expect further downward pressure in the market.


Written by Cindy Luk

January 21, 2010 at 3:11 am

Posted in Macro

Tagged with ,

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