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China inflation leaps, led by food

  • Published 21 Jan 2010

China registered its sharpest one-month rise in inflation for 20 months in December led by food prices, which jumped 5.2% year on year. We think Beijing’s concern over inflation is now bordering on alarm; if it cannot reassert control in coming weeks, it may be forced to tighten liquidity again either by new administrative measures or by raising interest rates.

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