Chinese Inflation Comes In Way Hot , Food Prices Surge -- Markets Drifting Lower Around The World

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4.5%. That was Chinese CPI for January. Analysts had expected 4.1%.Shanghai Daily:

Food costs, accounting for nearly a third of the basket, rose an annual 10.5 per cent in January, higher than the 9.1 per cent recorded in the previous month.

The Producer Price Index, a factory-gate measurement of inflation and a harbinger of future CPI, expanded 0.7 per cent from a year earlier in January, compared to 1.7 per cent in December.

Those hoping for/betting on more easing will be disappointed with these kinds of hot numbers. On the other hand, disinflation isn’t a great economic sign either, so there is a positive spin to all this.

Markets are selling off around the world.

Japan is down 0.6%. Australia is down 0.8%. US futures are over 0.3% lower.

We’ll see what happens with the Greek reform negotiations. Probably the next thing people will be watching tonight.

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