Growing dependency on imported energy and ores makes the Chinese economy (and the politically
sensitive inflation index) highly vulnerable to global price fluctuations and drags Chinese leadership into messy foreign policy situations they'd rather avoid.
Not exact matches
For an idea of how
sensitive stocks have been to signs of rising
inflation, look no further than the immediate negative reaction seen in US
indexes after
inflation rose more than expected in January.
In contrast, the values of the shorter - term bonds — represented by the US Aggregate Bond
Index and the one - month T - bills — are less
sensitive than the cost of income to interest rates and
inflation.