Analyst at National Bank Financial, notes that China’s annual inflation rate jumped to 2.8% in July, the highest in a year and a half. “Does that mean the People’s Bank of China will backtrack from its accommodative policy stance? Don’t bet on it. That’s because China’s rising inflation these days has little to do with mounting capacity pressures and more to do with idiosyncratic factors.” “Retaliatory tariffs by Beijing on U.S. agriculture have meant more food imports from other countries, often at higher prices than would otherwise be the case. Shortages due to the swine fever epidemic have also driven up pork prices sharply. And since food accounts for a significant weight of China’s CPI, the inflation uptick should not be really surprising.”