Side-Effects Of Chinese Quantitative Easing

Once in a while let's look at latest Chinese economic performance. BNP Paribas sums up today:

Stronger Q4 GDP 9.8% y/y or 11.2% SAAR on exports and property. Strong Inflation pressure spills over to decade-high core CPI as result of excess liquidity, robust food prices and strong inflation expectation. Loose monetary condition calling for more tightening, peaking PMI suggests domestic demand soft landing, cushioned by exports.  

Danske Markets writes about China: Growth accelerates, but December data weak.

So,  is a "decade-high core CPI as a result of excess liquidity" and a minor side-effect of Chinese own quantitative easing? Nice chart, once again, by economists at Societe Generale, click on chart to enlarge.