China's annual inflation eased to 4.1 percent December, the lowest level in 15 months, giving the government more room to tilt economic policy away from restraining prices and towards supporting sagging growth.
The annual rate of headline consumer price inflation was slightly ahead of expectations of 4.0 in the benchmark Reuters poll of economists, but below November's 4.2 percent, reinforcing the view of many that the central bank is poised to ease monetary policy.
The December figures was the closest that inflation came in 2011 to hitting the official target of 4 percent for the year, leaving the average rate above 5 percent.
The country's customs agency said on Tuesday that China's exports and imports grew at their slowest pace in more than two years in December, fresh evidence of cooling domestic and global economic conditions that could push Beijing towards a more pro-growth policy stance.Full article: Reuters China Inflation
If inflation is viewed as under control (a bit premature, perhaps) then the administration can ease policy in order to help revive "sluggish" growth. Should this happen, we could see natural resource companies do well as raw material prices would increase with increased demand. Not saying jump the gun here, just saying to keep your eye on the ball.
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