Karen Maley, writing in the Australian Business Spectator quotes from a research report from HSBC's chief China economist Qu Hongbin, who argues that the risk of “explosive” inflation in China is remote.
He says that “The inflation risk is broadly manageable and should be less severe than the period of 2007 to the first half of 2008 when China was faced with both inflation and overheating.”
See Australia's China cliffhanger (free sign up requires to view).
Granted she prefaces her article with a five paragraph preamble where she lists all the inflation risks and possible negative inflation scenario's. However the article naturally flows into the prevailing Australian view that the Chinese command economy manage their way out of the issue.
Compare the above this article in the Financial Times:
Beijing’s housing price fury goes viral
"With consumer inflation in China topping 5.1 per cent in November, public dissatisfaction at price rises has reached the highest level since records began in 1999, according to a recent central bank survey."
As I have been saying for the past two years:
Mind the gap!
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