China price rises

If inflation was the man driver of the People's Bank of China's monetary policy, the latest update on consumer prices would not have a significant sway on interest rate direction - up or down.

China's consumer price inflation accelerated to 2.5% in the year to January from 2.1% in the previous month. While this is higher than market expectations for a 2.4% gain and the highest inflation rate since May 2014, it remains below the PBOC's 3.0% target.

Moreover, this isn't likely to last for according to the National Bureau of Statistics (NBS), much of the increase in consumer prices in January was due to higher food and travel costs heading into the Lunar New Year holiday.

Nonetheless, this indicates that Chinese producers are still unable to pass on price rises to the consumer. Producer prices in China rose by 6.9% in the year to January - the highest since August 2011 -- up from 5.5% in the previous month and representing the fifth straight month of accelerating producer price inflation.

Read more: inflationPBOCPeoples' Bank of ChinaLunar New YearNational Bureau of StatisticsCPIPPI
Editor's Choice
The Bernie Fraser review of industry superannuation fund governance puts the onus of proof back on the government to demonstrate that one-third independent boards are the best way forward.
Russell Investments will sell its actuarial consulting business to a leading global advisory firm.
The Financial Planning Association Conduct Review Commission Disciplinary Panel has expelled financial adviser Darren Tindall and issued a fine of $16,000.
The financial services sector should not be tempted by "shiny new [fintech] toys", and must continue to invest in maintenance of their core technology, says APRA chairman Wayne Byres.
Brought to you by
2 NOV 2016
Our latest video features Franklin Templeton director of Australian fixed income, Andrew Canobi. He explains the unique investment strategy behind the Franklin Australian Absolute Return Bond Fund. The ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Alex Dunnin
Taking the risk out of insurance reform
Dysfunctional arguments Americans have regarding their Affordable Care Act remind us how poorly most people understand insurance. Following ...
Stephen Fay
Reality and perception of super returns
What matters more, the investment return on your superannuation balance or the how you feel about your return? Which does a member ...
Christopher Page
Redefining the family office
While the family office model has traditionally been the preserve of the ultra-rich, this may be changing very soon. Last week, Findex ...
Michelle Baltazar
When the disruptors are getting disrupted
2017 is going to be another year for the disruptors, including managed accounts providers - but their challengers, too, are not too ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
Link to something hZh7nAzV