Critical Takeaways From Cooling Chinese Inflation

Critical Takeaways From Cooling Chinese Inflation

Consumer prices and factory gate inflation rolled over in China last month, key data out Wednesday showed, bolstering the case for policy easing from the PBoC, a boon to risk assets. PPI rose 10.3% YoY in December (figure below), a full percentage point cooler than consensus and below the lowest estimate from nearly three-dozen economists. The range was 10.5% to 12%. China has, of course, moved to tamp down the surge in factory inflation with the kind of zeal typical of official efforts to add
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One thought on “Critical Takeaways From Cooling Chinese Inflation

  1. As of Jan/17 12:52 Hong Kong Stock Market Index (HK50) 24233 -150.18914 (-0.62%) it’s looking like the lower highs that came before. You jinx’d it.

    I think it was in Bloomberg I read about how China has been using the property market to gin up their GDP numbers for years when the need arose and how now the gig was maybe up on that…. So many conflicting stories. Each with their numbers. Seth Klarman has advised repeatedly, “don’t trust the numbers”, and he was referring to GAAP! China then? To dangerous for me. I’ll wait for some 200dma’s to turn up.

    China reminds me of a mountain lion I once watched intently studying penned cattle for hours in some heavily timbered mountains of Idaho. It was easy enough to observe the cat from camp because his eyes would light up like they were on fire with just a hand held flashlight aimed in it’s general direction. It was funny because the cat, the cattle, and myself, all were aware of the other’s presence and nobody did much of anything about it, other than keep watchful eyes on one another, except the kine, who’d break out in unison with mournful nervous lowing now and again when their anxieties built-up beneath the cat’s baleful stare and needed release. Probably hoping I’d flush the cat. I assume this because they always aimed their chorus in my direction well past nightfall. But I’m a worm, and worms got to eat too, so I also just waited… I got a bad feeling we’re the cattle in this (hi)story.

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