Chinese Inflation

One of the biggest worries for the People’s Bank of China (PBOC) is Chinese inflation. Higher Chinese inflation might lead to unrest by citizens. However, over the last few years, Chinese inflation has decreased appreciably, giving the PBOC more room to work with. As long as Chinese inflation remains stable, this augurs well for a society without too much upheaval. If Chinese inflation were to re-accelerate, the PBOC would have to step in and attempt to reduce pricing pressures.


The state of the Chinese economy continues to trigger some heated discussion, specifically concerning the immediate need for more stimulus to drive domestic consumption in China. (Read “China Scrambling for Economic Remedies.”) China faces declining demand for its goods from…

China is set to announce its first-quarter gross domestic product (GDP) today and, trust me; there is global interest in the result. A weak result and speculation will swirl that the country will face a “hard landing,” which is not…

China raised its benchmark interest rate on Wednesday for the third time this year and the fifth time since October. The country has tightened its lending requirements. Cash is harder to get. There is a pattern developing here. The country…

China is the second-largest economy in the world and is continuing to roll along at a nice pace. The International Monetary Fund (IMF) recently downgraded U.S. GDP growth to 2.3% this year from the previous 2.9% but concurrently raised China’s…

Many thought China was set to stall in 2011, but so far this has not been the case. The country’s gross domestic product (GDP) growth continues to be impressive coming in at 9.7% in the first quarter, above the estimate…

China continues to face surging inflationary pressures despite higher interest rates and loan tightening. The country’s Consumer Price Index (CPI), excluding food, came in at 4.9% in February, which continues to be way too high. As such, China increased its…

It’s now official. According to Japan, China’s nominal gross domestic product (GDP) of $5.87 trillion in 2010 has surpassed Japan’s nominal GDP of $5.47 trillion. But China continues to face surging inflationary pressures. China’s Consumer Price Inflation (CPI), excluding food,…

— "The Financial World According to Inya" Column by Inya Ivkovic, MA I promised PROFIT CONFIDENTIAL readers to keep on monitoring China — and here it is again in the financial press, pulling a two-for-one with efforts to restrain its…

On any given day, central banks of the industrialized world face numerous challenges, the latest being skyrocketing food and energy prices caused by global imbalances between supply and demand. It is great that global demand is pushing world economies forward.…

Who would have thought that one of the best China investment opportunities would be Caterpillar Inc. (NYSE/CAT). This well- known Dow stock continues to be a market leader on the stock market, capitalizing on the global economy's demand for construction…