Don't Ignore The Rebound In China Inflation

Includes: FXI
by: Tim Iacono

Overshadowed by other news today – the Greek debt deal, the U.S. housing foreclosure deal, and the Bank of England deal to print up another 50 billion pounds or so for the greater good – comes word of a surprise increase in the inflation rate in China as detailed in this Reuters report and as depicted below.

Of course, you never know what to believe in the economic data from China, but, if the government says inflation is 4.5 percent, you can bet that it’s at least that high. There too, food prices are rising at an uncomfortable pace and one possible solution that policymakers should look into is to encourage the populace to buy more iPads and less pork.