- Consumer prices rose 2.8% year over year in April -- their fastest pace in 18 months
- Producer prices rose a staggering 6.8%
- Housing prices rose 12.8% -- their highest since records began five years ago.
The housing numbers are even more astounding when you consider Beijing’s attempt to slam the brakes midmonth.
Among the measures taken: A demand for higher down payments, and a ban on lending for the purchase of third homes (!)
Sure enough, it put a lid on home sales month over month…
But it did absolutely nothing to put a lid on prices.
Something’s got to give. Either interest rates have to rise, the yuan allowed to float or both. But when that happens is anyone’s guess.
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