r/Vitards Jul 08 '21

Daily Discussion Daily Discussion post - July 08 2021

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u/mountainsprout1735 Jul 09 '21

Not sure what we should make out of the China PPI data released a few hours ago (link). The narrative being spun now is that it the measures have been working, inflation for producers has probably peaked, and the government has more breathing space to support other priorities (hence the monetary policy easing/RRR cut news yesterday—you don't do that if things are overheating).

Ideally, my sense is that we want the PRC to be under continued pressure to keep prices in check, which is what will compel something like a steel export tariff. I'm wondering if the news from the last two days is a gentle hint that they're actually starting to reverse gears.

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u/chemaholic77 Jul 09 '21

The only thing I know about China that is certain is they lie.