{"id":3102,"date":"2010-11-01T13:11:34","date_gmt":"2010-11-01T13:11:34","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3102"},"modified":"2025-03-27T15:49:09","modified_gmt":"2025-03-27T15:49:09","slug":"chinese-overheating-to-force-further-tightening","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3102","title":{"rendered":"Chinese overheating to force further tightening"},"content":{"rendered":"<p>Chinese business surveys for October confirm earlier <a href=\"http:\/\/www.moneymovesmarkets.com\/journal\/2010\/9\/30\/will-china-resume-tightening.html\">signs<\/a> of a pick-up in economic growth accompanied by rising inflationary pressures.<\/p>\n<p>The purchasing managers&#8217; input price index rose to a record high in data extending back to 2005, signalling a reacceleration of producer price inflation &ndash; see first chart.<\/p>\n<p>An earlier <a href=\"http:\/\/www.moneymovesmarkets.com\/journal\/2010\/10\/13\/fed-forces-china-to-tighten.html\">post<\/a> suggested that annual consumer food price inflation would rise to more than 10% by October, pushing the headline CPI rate towards 4.5%. This forecast remains on track: food inflation moved up to 8.0% in September and agricultural product prices continued to surge into early October &ndash; second chart. (Interestingly, the product price series has stopped updating on Datastream because it has been &#8220;suspended by the source&#8221;.)<\/p>\n<p>The decision to slow tightening efforts this summer appears to have been a major mistake, leaving policy-makers far behind the curve. Global markets are vulnerable to a catch-up, which may offset any positive impact from the Fed&#8217;s QE.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/china-producer01110.gif?__SQUARESPACE_CACHEVERSION=1288618046951\" alt=\"\" \/><\/span><\/span><\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/china-cpi01110.gif?__SQUARESPACE_CACHEVERSION=1288618064154\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese business surveys for October confirm earlier signs of a pick-up in economic growth accompanied by rising inflationary pressures. The purchasing managers&#8217; input price index rose to a record high in data extending back to 2005, signalling a reacceleration of producer price inflation &ndash; see first chart. An earlier post suggested that annual consumer food [&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-3102","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\/3102","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=3102"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3102\/revisions"}],"predecessor-version":[{"id":5411,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3102\/revisions\/5411"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}