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Parties on the other side might push for consumer price indexation, or no indexation at all.
As measured by the break-even rate, expectations for consumer price inflation dropped to 2.14 and the TIPS market stumbled.
However, this week's figures for consumer price inflation were ammunition for those arguing that the economy is converging on the euro area.
To emphasize his point, Mr. Lardy highlights how real average interest rates, or household deposit rates as adjusted for consumer price inflation, were negative for the decade that the President Hu Jintao and former Prime Minister Wen Jiabao were in power.
In Beijing this week, delegates to the National People's Congress took a moment away from debating annual targets for consumer price inflation (3 per cent), unemployment (4.5 per cent), and cuts to carbon intensity (3.1 per cent), to reiterate their policy position on the migration of the soul.
Moreover, the sudden increase in gasoline price is more important for consumer price inflation than crude oil price shocks.
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Reports on Friday for consumer prices and industrial production showed the tentativeness of the improvements.
The annualized rate of inflation for consumer prices was 1.2 percent in April 2013, down from March, when it was 1.7 percent.
A day later, a gain of 0.6percentt is expected for consumer prices, (0.2percentt if food and energy are excluded).
This was first set at 2.5% a year for retail prices excluding mortgage-interest payments, and then switched in December 2003 to 2.0% for consumer prices.
But without the volatile prices for food and energy, the core index for consumer prices remained flat, as they did in March.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com