Strong Chinese Consumer Price Index (CPI) data for February suggest the world’s second-biggest economy will no longer be a source of global disinflation. China’s CPI rebounded by 2.9% year-over-year (YoY) in February, the strongest rise since 2013. Although the Chinese New Year holiday boosted food prices in February, the less volatile core CPI, which excludes food and energy, accelerated 2.5% YoY (versus an average 2.2% over the past three months) ‒ the fastest pace since the fourth quarter of 2011. And services prices rose more than 3% YoY ‒ the fastest pace in six years. We expect China’s CPI to maintain ... (full story)