In recent decades China has already increased over 130-fold its bilateral trade in goods with emerging markets and developing economies, with the country also becoming the world’s top exporter. [13] And recent research indicates there is a significant correlation between a country’s trade with China and its holdings of renminbi as reserves. [14] New trade patterns may also lead to new alliances.
Subdued headline inflation has been supported by unusually reduced rises in the noncore component of the CPI. Specifically, since the middle of last year, noncore inflation has averaged only 2.3 percent, contrasting with the roughly 6 percent average during this century. On the other hand, core inflation has been growing gradually this year, largely reflecting moderate pass-through from currency depreciation to tradable goods prices.