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China inflation wobbles

9 Feb 2012 by Jim Fickett.

China's National Bureau of Statistics reported inflation data through January today. The last few months had seen an encouraging decline in inflation, but the inflation rate rose in January. Is this anything to worry about? Not yet. A glance at the graph below shows that the month-to-month changes are quite noisy. And January is a particularly noisy month, due to the Lunar New Year holiday. We'll have to wait to be sure of the trend but, in any case, balancing growth and inflation will continue to be a core challenge for the politicians.

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