A little bit of news; important news, but not a lot of news. However, although some of the inflationary rise is due to New Year's festivities, there is longer-term inflationary pressure still at work, and that of course is what is of concern here. It could easily take six months, or rather a year, to truly gauge the strength and potential for persistence of the inflationary pressures, as well as their long-term impact upon the economy. External factors, such as the mortage bubble in the U.S. and bank losses and tax-fraud in Europe will not help any.China's January producer price index has jumped by its highest level in three years to 6.1 percent, as energy and food costs continue to rise after the transport disruptions caused by the harsh snowstorms.
Economists said the high rate of inflation is likely to be sustained, with January CPI - to be released today - expected to hit a 13-year high of 8 percent, up from December's 6.5 percent. This would force Beijing to maintain its tightening measures.