China producer inflation-interesting trend

The pink line show the actual producer price inflation – it is showing the year-over-year changes.

The blue line show the changes over the 2008 levels (it is simply the multiplication of the values of the same month from 2009-2010)

The blue is the same,but for the 2008-2009-2010 period

It is showing a short term deflation shock,but a long term inflation.

Interesting.