China Tells

China has started to show a potential sign of inflation, though still quite remotely. The Producer Price Index (PPI) showed a positive gain of 2% for the first time in the last 13 months, while the Consumer Price Index (CPI) continues to climb slowly from 0.6% to 1.4%. Up till now I think the central government has completed the first set of goals to inflate the economy out of the potential recession. The next question seems to be when to think of an exit while keeping the inflation under control.

中国消费者物价指数和生产者物价指数在12月份双双上升，特别是生产者物价指数在最近的13个月首次出现正增长。目前来看中央政府和银行对于经济刺激的第一步目标已经完成，即用刺激政策托住经济下滑的趋势并且给市场注入货币以制造温和通胀，下面一步是比较重要的问题：何时退场？