Nomura’s Lu Sees China Headline Inflation at 4% in November, Driven by Pork Prices

The video discusses the rare inflation trends in China, projecting a rise in CPI inflation driven by pork prices due to African swine fever. It highlights the challenges faced by the PBOC in responding to a slowing economy with negative PPI inflation. The Chinese government aims to maintain a growth target above 6% by importing more meat and implementing low-profile policy measures to manage funding costs.

What is the expected inflation rate in China for December?

• 3%

• 6%

• 4%

• 5%

What is causing the rise in CPI inflation in China?

• Increased export tariffs

• Higher demand for electronics

• Rising pork prices

• Increased oil prices

What is the impact of African swine fever on China's economy?

• It has no impact on pork supply.

• It has increased the supply of pork.

• It has caused a delay in pork supply rebound.

• It has led to a decrease in pork prices.

What growth target is the Chinese government aiming for in 2019?

• 4%

• 5%

• 7%

• 6%

Which policy measure is China likely to use instead of rate cuts?

• Triple cuts

• Murph operations

• Increased taxation

• Export restrictions