{"id":3031,"date":"2010-07-15T11:43:36","date_gmt":"2010-07-15T11:43:36","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3031"},"modified":"2025-03-27T15:49:05","modified_gmt":"2025-03-27T15:49:05","slug":"chinese-gdp-inflation-still-climbing","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3031","title":{"rendered":"Chinese GDP inflation still climbing"},"content":{"rendered":"<p>Chinese consumer price inflation fell from an annual 3.1% to 2.9% between May and June but growth in the wider GDP deflator measure rose to 5.6% in the second quarter from 4.6% in the first &ndash; see chart. This is above the average of 4.4% since 2000.<\/p>\n<p>Annual GDP deflator inflation has averaged 2.5 percentage points more than CPI inflation since 2000 but, unusually, the gap closed temporarily during the &#8220;great recession&#8221;, which, apparently, bypassed China. This could reflect price weakness in non-consumption GDP components; it is also consistent with a massaging down of the deflator data in order to boost published real GDP growth rates.<\/p>\n<p>Deflator inflation peaks of 8.8% in 2004 and 11.0% in 2007 followed highs of 20% and 23% respectively in annual growth in narrow money, M1 &ndash; see chart. With M1 expansion having reached 39% last year, it would be surprising if second-quarter inflation of 5.6% marks the peak in the current upswing.<\/p>\n<p>Chinese monetary policy is on hold but inflationary risks from the monetary overhang suggest no scope for growth-boosting actions.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/china-gdp-deflator150710.gif?__SQUARESPACE_CACHEVERSION=1279195262394\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese consumer price inflation fell from an annual 3.1% to 2.9% between May and June but growth in the wider GDP deflator measure rose to 5.6% in the second quarter from 4.6% in the first &ndash; see chart. This is above the average of 4.4% since 2000. Annual GDP deflator inflation has averaged 2.5 percentage [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3031","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3031"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3031\/revisions"}],"predecessor-version":[{"id":5340,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3031\/revisions\/5340"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}