Chinese Inflation Follows Germany - Explodes To 2011 Highs

In an ominous sign of the need for more tightening, Chinese inflation (CPI and PPI) ripped higher in January.

Both Consumer and Producer prices rose more than expected but it was the 6.9% spike in PPI that is most troublesome - fastest rate of price expansion since August 2011...

 

And Consumer prices are rising at the fastest since 2013...

Driven largely by reflexive commodity exuberance, the relative input- versus output-cost inflation will likely be a huge drag on Chinese corporates and with Chinese food prices rising notably (especially pork), one wonders what trick China has up its sleeve next to suspend reality.

Notably, the China inflation data follows extremely strong German inflation data this morning as the world's central bankers get cornered by their own reflexively-indcued commodity price inflation and are forced to pull the plug (or prick the bubble).