The boom in Chinese stocks and, now, a sudden spike in pork prices have been interpreted by some as evidence that the authorities are losing the battle to prevent China’s huge export earnings feeding inflation. In fact, pork price inflation is a global, not Chinese phenomenon. Most of the surge in equity markets has been financed by a movement of funds from savings accounts, rather than liquidity-fuelled debt. And there is no sign in other assets or consumer prices of broad price pressures: Chinese inflation is under control.
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