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Country Focus

Chinese Inflation: Not A Demand Story

by Felix-Antoine Vezina-Poirier, Chief Strategist  

Chinese inflation surprised to the upside, but the rise reflects higher energy prices rather than stronger demand. CPI rose 1.2% y/y versus 0.9% expected, while PPI was the bigger surprise at 2.8% y/y, almost double consensus. The PPI move matters more…

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