China's Inflation Remains High, Triggering Further Tightening. How Do Oil and Gold React to Rate Hikes?
BonTradeChina's January CPI came in at +4.9% y/y in January, up from +4.6% in December. The reading was in line with the latest speculation. The National Statistics Bureau (NBS) reweighted the basket but it was smaller-than-expected increase in food price that contributed to the inflation data, rather than the reweighting. The set of data should not ease the PBOC's tightening schedule. We expect to see more rate hikes and rises in RRR later this year.
