Chinese inflation is about to violently reverse

Tuesday, 10 August 2021

Yesterday we saw Chinese inflation with the usual hoopla from an MSM that has no idea what it is doing. Driving through the rear vision mirror it was all panic about the headline inflation number at 9%.

Here are the PPI components:

ALL of the current inflation in China is commodities based. Moreover, a lot of it is still catch-up pricing.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.