This morning's consumer price inflation report (CPI) out of China came in much better than we or the Street were expecting. At +4% inflation growth for the month of October, the Chinese are seeing inflation rates at almost 1/2 of that seen prior to the Olympics - this is good!
The October report is down from September's deflating reading of 4.6% (see chart). Alongside the $586B stimulus package, fundamental economic "Trends" in China are starting to improve, on the margin.
In our macro models, everything that matters most occurs on the margin.
KM
The October report is down from September's deflating reading of 4.6% (see chart). Alongside the $586B stimulus package, fundamental economic "Trends" in China are starting to improve, on the margin.
In our macro models, everything that matters most occurs on the margin.
KM
