Thursday, May 6, 2010

JPMorgan (NYSE:JPM): Inflation Threatens China, Britain

J.P. Morgan (NYSE:JPM) said recently that inflation in China has probably increased, making the probability that interest rates will be raised again by the central bank.

While they also noted that the threat of inflation in the U.K. is vastly underestimated, especially as it relates to investors holding or thinking of investing in gilts.

The consumer-price growth in the U.K. increased to 3.4 percent in March, close to a 14-month high of 3.5 percent in January.

China may have had their inflation rate grow to between 2.7 percent and 2.8 percent for April, making it likely interest rates will be raised to combat the hot economy.

Estimates from Reuters has the inflation rate in China rising to 4 percent for the year on average.

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