Chinese inflation jumps for first time in five months

Chinese inflation jumped in January after a straight run of five monthly declines due to seasonal factors.

The consumer price index rose 4.5% from a year earlier and was up from December's 4.1%, according to the FT. The increase was caused mainly by a shopping blitz before last month's Chinese New Year holiday, which pushed up food prices. This is an effect regularly seen in the past and is likely to be temporary. Core inflation, stripped of food costs, rose much more slowly, giving Beijing some room to stimulate the slowing economy if necessary. BNP Paribas economist Ken Peng said: "It is very likely that after the holiday, prices will come down, especially for food. Next month's numbe...