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Asian markets fall as Chinese inflation rises

Chinese inflation rose to an 18-month high in April, leading to an immediate decline in Asian stockmarkets.

According to the National Bureau of Statistics of China, China’s Consumer Price Index rose 2.8 per cent year-on-year in April, up 0.4 percentage points from the previous month.

Meanwhile, the property prices in 70 of China’s Cities rose 12.8 per cent, which is the most since data began in 2005.

According to Bloomberg, on news of the twin rise in prices, Hong Kong’s Hang Seng Index fell 1.7 per cent, and the Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 1.9 per cent to close at 2,647.44—the lowest in nearly a year.

The rise in inflation will strengthen calls on China’s authorities to raise interest rates as fears increase of an asset price bubble.

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