Chart courtesy of Reuters.com
Chinese inflation dropped to 4.1% in December, a 15 month low and just above the official CPI target of 4% (although the average over the past 12 months is 5.4%).
Markets in Asia were supported by investor expectations that this will enable the Chinese authorities to loosen monetary policy (a recent poll by Reuters showed that analysts expect a 200 basis point cut in rates over 2012). However, a government economist has been reported as suggesting that inflation is likely to rebound in January and that a large policy loosening is unlikely.
The National Bureau of Statistics is due to publish GDP data on 17th January.
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