Inflation in China increases by 4.5%

January saw an increase in inflation in China, which last peaked in July last year.

Prices rose unexpectedly by 4.5% compared to last year as buyers increased spending around Chinese New Year. Last time it peaked was in July reaching a value of 6.5%. Ever since then it had been easing steadily only to be hit by a sudden lurch this January.

However "January numbers are distorted by the Lunar New Year holiday and we need to wait until February numbers come out to make our conclusions," said Shen Jianguang from Mizuho Securities Asia. 

Source: BBC News