Chinese inflation is showing signs of having reached its peak.
HSBC’s China Purchasing Managers’ Index fell suggesting that the pace of business expansion in the county’s factories is moderating but still strong.
If that is so, it means the Beijing government will be able to stick to its course of a gradual rather than aggressive tightening of monetary policy through interest rates increases.
An easing of price pressures could also cap this week’s jump in the yuan to a record high against the dollar
The central bank said that had played an important role in taming inflation.