Producer price, consumer inflation picks up

China’s producer price inflation picked up more than expected in January to near six-year highs, 6.9%,  as prices of steel and other raw materials extended a torrid rally, adding to views that global manufacturing activity is building momentum. China consumer inflation also rose more than expected, nearing a three-year high, 2.5%, as fuel and food prices jumped, data showed on Tuesday. Much of the pick up in consumer prices was likely due to higher food and travel costs heading into the long Lunar New Year holiday, the National Bureau of Statistics (NBS) said. But according to Reuters, mounting price pressures in China and many other countries have sparked talk of tighter monetary policy this year, after years of super-loose settings aimed at reviving economic growth, and China’s central bank raised short-term interest rates in recent weeks.