July Inflation Figures Distract From Strength Of Trade

Chinese stocks may have taken a nosedive following the latest monthly wholesale inflation figures that were the highest in a decade at 10% (9.1% was the forecast), but investors should have been paying greater attention to the trade numbers. Both exports and imports in July beat forecasts, regardless of a slowing global economy and anaemic growth in China’s key export market, the U.S.

The inflation figures were spiked by high energy and commodity prices. Energy prices, at least, have eased since July, so the downward trend in consumer price inflation that we’ve seen since February’s peak of 8.7% shouLd be interrupted only temporarily if at all. Consumer price numbers are due on Tuesday.

Leave a comment

Filed under Economy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s