China inflation suggests more rate hikes likely

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Chinese activity data for October, released on November 11, was broadly in line with expectations, providing further evidence that China’s economy is picking up steam after its mild slump mid-year.

Meanwhile, price pressures are continuing to rise, with PPI inflation increasing for the first time in five months and CPI inflation picking up sharply to a two year-high. Chinese authorities raised banks’ reserve requirements by 50 basis points on November 10, providing further evidence that the

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