Chinese consumer price index grew 4.4% last month, its fastest pace in two years.
The number beat consensus estimates of 4%, according to Bloomberg.
At this rate it will force China to pass more slowing measures, such as raising interest rates or reserve requirement and letting the yuan appreciate faster.
With the G20 meetings right around the corner, this should set the stage for a global compromise — namely, we all want the yuan to appreciate. Of course, expect China to blame its overheating on Bernanke.
The CPI data also sheds some light on yesterday’s first-ever minimum wage law in Hong Kong. This isn’t about social progress as much as slowing the machine.
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