Inflation Hits A 10-Year High (Again)

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The Chinese economy continues to report rapid growth, and to cause some concern as inflation hits a 10-year high of 6.5 percent (though that is partly driven by the food sector, and especially problems with pork supply). The Asian Development Bank (ADB) reports (via Bloomberg):

    “Brisk exports, strong investment and buoyant consumption will lift economic growth in China to 11.2 percent this year, up from an earlier estimate of 10 percent, with the inflation rate breaking 4 percent, says an Asian Development Bank (ADB) report released here on Monday.”

ADB (via Xinhuanet) suggests that inflation for the year could be 4 percent, and that GDP growth could hit 11.2 percent.

Another Bloomberg report adds that the trade surplus “widened 33 percent to $24.97 billion, the second-highest monthly total”.

The only figure that seems to have slowed down (a bit) is that for industrial output, which seems to have felt the impact of recent export curbs, and which fell to 17.5 percent in August from 18 percent in July.

I suspect that more policy action can be expected. And that stress levels in certain government departments may rise even faaster than the economic statistics.

See news sources:

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