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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (51235)	1/24/2006 10:12:11 PM
From: shades	Respond to of 110194

So I agree with you, energy and housing are understated in the CPI. Computers are overstated in the CPI. How does China value such?: fxstreet.com Amy Auster, head of international economics with Australia New Zealand (ANZ) Banking Group, said that she would be watching for news at Wednesday's briefing on potential changes to China's CPI basket and its GDP deflator, which is used to account for the effects of inflation State media have reported that China's statisticians are expected to increase the weighting of energy in the basket of goods used to measure consumer prices. "There's some argument to be made that the CPI basket might not reflect your average basket of household goods. It might be overly weighted on food. If they did introduce a new GDP deflator, it would be a good time to reassess the CPI basket," Auster said Food currently is believed to contribute about one-third of the basket, compared to about 15 pct and 10 pct in the US and UK respectively. On other economic indicators, Auster expects to see full-year data to remain in line with those of the first three quarters, with percentage increases for retail sales likely to stay around 12 to 14 and fixed-asset investment remaining in the mid-20s China's urban fixed-asset investment rose 27.8 pct year-on-year in the first 11 months of 2005, while nominal and inflation-adjusted retail sales were up 13.0 pct and 12.1 pct respectively in the first nine months Goldman Sachs, however, warns that even the data released on Wednesday has to be taken with a grain of salt "Despite the improved historical readings of China's macro, data quality will likely remain an issue for macro analysis for China," it said in a note to clients.