China’s Inflation Sharply Fell in October to 5.5%

Chinas inflation rate sharply plummeted in October and reached an annual
inflation rate of 5.5% the lowest level since May 2011 and sharpest single
month drop since 2009. In addition there was a slowdown in the growth of
industrial output to 13.2%. These figures indicate that the raises in interest
rates and in reserve requirement ratios of commercial banks done by the People
Bank of China, in order to curb the inflation pressures, may have helped in this
regards. People Bank of China raised the interest rates five times throughout
the year. Despite the recent decline in Chinas inflation rate, it is still above
the 4% annual target inflation rate of the People Bank of China. The chart above
shows the development of Chinas inflation rate in 2011 and the inertest rates of
People Bank of China. Currently major commodities prices including gold, silver
and crude oil prices are traded down: Current gold price, short term futures
(December 2011 delivery) is traded at $1,788.5 per t oz. a $10.7 decrease or
0.59%, as of 12:03*. Current Nymex crude oil price, short term futures (December
2011 delivery) is traded down to $95.66 per barrel as