Chinese inflation hits three-year high

Discussion in 'China' started by Rahul92, Jul 10, 2011.

  1. Rahul92

    Rahul92 Senior Member Senior Member

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    Inflation in China has risen to its highest level for three years, despite a series of interest rate rises and curbs on bank lending.

    [​IMG]
    China's leaders fear rising food prices could trigger social unrest

    Prices in June rose 6.4% from a year earlier, well above the rate for May.

    Analysts say Chinese authorities are concerned that the rising cost of basic foodstuffs could fuel social unrest.

    The price of pork - a staple of the Chinese diet - has reached a new high, while crop-growing regions have been hit by severe flooding.

    The Chinese government has made tackling inflation its top priority and interest rates have been raised three times this year.

    Many economists expect China's inflation to cool in the second half of the year as world oil prices ease.

    However, they are watching for evidence that higher costs are filtering into a broader swathe of the economy.

    A report from China's CCBIS bank released earlier suggested that inflation would peak at 6.2% in June.

    Earlier this month, Premier Wen Jiabao promised that pork prices would begin to fall in the coming months.

    "With the implementation of government measures, price rises will be curbed effectively," he said during a visit to a market.



    well who said china is always an exception



    BBC News - Chinese inflation hits three-year high
     
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  3. Godless-Kafir

    Godless-Kafir DFI Buddha Senior Member

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    Its pretty much like our inflation rate, ours was at 8.4% in May and it went up to 16% in Jan.

    What is the possibility that India and China can trade the food which is inflating each others economy? We can have trains through the border. Example some vegetables like Onion could be a Surplus in India and Wheat could be a surplus in China, so we can trade those items that we dont have?
     
  4. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Chinese inflation is double what they report, so figure nearly 13% which isn't far off from my data points. Funny thing about this spike is it hitting the urban white collars nearly as hard as it is the factory workers. Minimum wage gets raised but office wage stagnates and they have less money for consumption spending it on food. They can forget about owning property.
     

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