Growing inflation pressures in China is a theme that is starting to get more attention in the financial press in the wake of several related developments. First came unexpected policy tightening moves (i.e. adjustments in overnight bill rates and the 50 bps hike in reserve requirements). Next came news that regulators were worried about excessive loan growth in January as loans hit 15 percent of the full year target in just the first two weeks of the new year, and finally we have the release of hotter-than-expected economic data for January just announced signaling a faster than expected expansion in China's manufacturing sector and an unexpected spike in producer prices.