Inflation in China at record near term low

Can steel be as cheap as cabbage?

RBI Watch                                                                                    Monetary Policy 2014-15

On October 6,  in my review of RBI’s monetary policy I drew attention to the exceptionally benign inflationary environment in the developed world. Actually, this applies to parts of the emerging market world also.

Among BRICs, we need to be particularly worried about the situation in China. The last reading for China’s CPI came in at 1.8% - the lowest since January 2010. PPI in China has been falling.

Please read this article in the Financial Times of October14 titled “China steel now cheap as cabbage”.