Economists seem at a loss as to whether or not the re-weighting of China’s inflation index has had a notable effect on January’s inflation number. At 4.9 per cent, it’s weaker than expected – but is that because there’s a thumb on the scales?
In lieu of a definitive answer, it’s worth looking at what the Chinese statistics bureau have changed, and perhaps get some idea of why.
Here’s a helpful list of the main changes from Morgan Stanley:
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