China Inflation - Putting the Tiger Back in its Cage

This Friday China is set to release a raft of economic indicators, including first quarter GDP, retail sales, PPI, and industrial production. But by far the most closely watched of the upcoming data will be CPI - the key indicator for inflation.

February's CPI reading jumped 4.9 percent year on year, and expectations are the March reading will come in even higher. Considering the government's official full year CPI target is 4 percent, it's no wonder that Beijing has put fighting inflation as one of its top priorities.

China has adopted a series of measures to try and help cap runaway prices including hiking interest rates and raising the reserve requirement ratio for its banks.

But have the measures worked?

A number of investment bank's forecasts think they have or at least will soon.

Last week HSBC upgrade its rating on China to "overweight" saying it believes inflation will peak in June.

Citigroup joined the optimism by urging invstors to buy China stocks, while Goldman Sachs upgraded its China equity stance to overweight from market weight, favoring banks, and the often quoted bubble risk sector, property.

But will the bullish calls come true?

That's our Squawk Stats question of the week.