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Chinese inflation at 28-month high

Inflation in China has risen to a 28-month high, sparking warnings of new interest rate rises.

The inflation rate, measured by the consumer price index, rose 5.1% year-on-year in November, an increase that was above market expectations.

On Friday, China had reported much stronger than expected export growth in November, adding to inflation fears.

Inflation has in the past caused unrest in China, where poor families spend up to half their incomes on food.

The government has said it will take strong action against anyone found to be manipulating food prices.

It has taken a number of measures to try to tighten its monetary policy and boost the supply of key goods.

BBC

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May
24
Today’s Global
Market Events
8:30am

CAD
Corporate Profits q/q
9.0%
USD
Core Durable Goods Orders m/m
1.1% vs. -0.8%
USD
Unemployment Claims
372K vs. 370K
USD
Durable Goods Orders m/m
0.5% vs. -4.0%
9:00am

EUR
ECB President Draghi Speaks
EUR
Belgium NBB Business Climate
-10.6 vs. -10.7
10:30am

USD
FOMC Member Dudley Speaks
USD
Natural Gas Storage
77B vs. 61B
1:00pm

USD
FOMC Member Dudley Speaks
3:00pm

USD
Treasury Sec Geithner Speaks
7:30pm

JPY
Tokyo Core CPI y/y
-0.5% vs. -0.5%
JPY
National Core CPI y/y
0.1% vs. 0.2%