Seeking Alpha

China said today its consumer price index hit a three-year high of 6.4% in June, led by a 14.4%...

China said today its consumer price index hit a three-year high of 6.4% in June, led by a 14.4% jump in food prices - suggesting Beijing is struggling to keep a lid on prices. Economists, who thought prices would recede in the second half of 2010 (they didn't), remain confident they will this time.
Comments (7)
  • wyostocks
    , contributor
    Comments (8244) | Send Message
     
    "Economists, who thought prices would recede in the second half of 2010 (they didn't), remain confident they will this time."

     

    Why?
    9 Jul 2011, 04:28 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    Why?

     

    Academic theory versus reality.
    10 Jul 2011, 04:17 PM Reply Like
  • cynic2011
    , contributor
    Comments (652) | Send Message
     
    The number is calculated incorrectly. It shows the price level today vs. a year ago,so doesn't reflect whether prices are rising or falling today. They could have been rising last year and falling today with the same result.

     

    The correct methodology is to caculate the annual increase during the month.
    9 Jul 2011, 05:23 PM Reply Like
  • bindlepete
    , contributor
    Comments (433) | Send Message
     
    They will take a lesson from Greenscam, Bernanke and Clinton and learn to cook the statistics. But a real decline in prices in China's food budget? Forget it unless they go to price controls a la Nixon.
    9 Jul 2011, 08:54 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4013) | Send Message
     
    Food inflation? Try Soylent Green.
    9 Jul 2011, 09:22 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    China's statistics are cooked to begin with. Nobody believes them anyway.
    9 Jul 2011, 10:21 PM Reply Like
  • jw4golf
    , contributor
    Comments (340) | Send Message
     
    economist and weathermen are the same. there is always some excuse for missing their projections.
    10 Jul 2011, 01:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector