Wednesday, December 15, 2010
Inflation in China Hits a 28-Month High
The Chinese National Bureau of Statistics announced on Saturday, China's inflation has soared to a 28-month high. The consumer price index rose by 5.1 % year-on-year in November.
Food was the biggest concern, with prices rising 11.7 %. Economists say inflation could be spreading to other sectors, with health care up 4 % and house prices up 5.8 %.
[Hu Xingdou, Professor of Economics, Beijing Institute of Technology]:
“China will experience a long-term inflation era. Price rises will be seen in sectors like real estate and asset prices, prices of raw materials, commodities, agricultural products and agricultural inputs will also rise rapidly."
Economists blame massive lending and billions of stimulus spending in reaction to the financial crisis. (more)
at 12:13 AM