The Chinese economy is showing no signs of cooling down
Meanwhile, China’s latest data, released today, reveals stubbornly high inflation and weakening growth. Consumer prices were up 6.5 per cent year on year in July, largely affected by a whopping rise in food prices (14.8 per cent).
These figures underscore China’s dilemma, as policymakers try to tame down a socially perilous inflation without stalling growth - especially at a time when a second recession, affecting China’s exporters, could demand expansionary measures to stimulate the domestic economy. Inflation could be reaching a peak, however, as oil prices fall, Chinese pork prices stabilize, and the impact of previous measures starts to kick in.