China’s Inflation Sharply Fell in October to 5.5%

China’s inflation rate sharply plummeted in October and reached an annual inflation rate of 5.5% – the lowest level since May 2011 and sharpest single month drop since 2009.

In addition there was a slowdown in the growth of industrial output to 13.2%.

These figures indicate that the raises in interest rates and in reserve requirement ratios of commercial banks done by the People Bank of China, in order to curb the inflation pressures, may have helped in this regards.

People Bank of China raised the interest rates five times throughout the year. Despite the recent decline in China’s inflation rate, it is still above the 4% annual target inflation rate of the People Bank of China.

China inflation October 2011 Rate (percent) November 9 2011






The chart above shows the development of China’s inflation rate in 2011 and the interest rates of People Bank of China.

Currently major commodities prices including gold, silver and crude oil prices are traded down:

Current gold price, short term futures (December 2011 delivery) is traded at $1,788.5 per t oz. a $10.7 decrease or 0.59%, as of 12:03*.

Current Nymex crude oil price, short term futures (December 2011 delivery) is traded down to $95.66 per barrel as of 12:10*.

Euros to US dollar exchange rate is currently traded up at 1.3639 a 1.406% decrease as of 12:12*.


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