China Factory Prices Jump 3.3%, Lifting Global Inflation Outlook

 China’s factory-gate inflation rose to the highest since late 2011, helping to sustain prices around the world. Consumer prices picked up on rising food costs.
The factory to the world may be poised to export inflation again, as prices boosted by rallying commodities and stronger demand would ripple through supply chain across Asia. Still, uncertainties remain on U.S. President-elect Donald Trump’s fiscal stimulus plan and policy making in China, where authorities are working to curb financial risks.
"China has entered a new inflationary cycle," said Raymond Yeung, chief greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong. "The next move of the PBOC should be an interest rate hike, not a cut."

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