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China's 2% Inflation Estimate for 2009 Baffles Economists

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Yes, just when it looked as if our long national nightmare of baffled economists had come to an end, word from Bloomberg today is that economists are... again... baffled! The Chinese government is estimating that inflation may be 2 percent for 2009, a baffling forecast for economists, because Chinese prices have fallen for six of the past seven months.

"“It’s just impossible,” Wang Qian, a Hong Kong-based economist at JPMorgan told Bloomberg today. "Inflation would have to jump to more than 6 percent for the rest of the year to bring the average to that level, said Wang, who forecasts a 0.5 percent decline in prices for 2009."
SOURCE:   Bloomberg