Data from China today confirmed higher interest rates in January. Here's how.

Here we go, as I said earlier:

In December 2023 Chinese loan Prime rates were 3.45% for the one-year and 4.20% for the five-year:

• the y/y inflation rate -0.3%

In January 2024 Chinese loan Prime rates were unchanged, still at 3.45% for the one-year and 4.20% for the five-year:

• and the y/y inflation rate was -0.8%

Yep, real rates rose in China in January.

The stock market noticed ...

Happy (Lunar) New year!

ps. China is going on an 8-day holiday beginning tomorrow. Who is going to be bag holding stocks for next week?

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pps. The m/m CPI did rise, so there is a silver lining:

• China January CPI +0.3% m/m (expected +0.4%), with y/y remaining in deflation at -0.8%

JPM expect the CPI to turn positive y/y sometime in 2024:

• China January inflation data due today - the domestic economy is grappling with deflation