- China Business Blog - http://www.chinabusinessservices.com -

Inflation Hits A 10-Year High (Again)

The Chinese economy continues to report rapid growth, and to cause some concern as inflation [1] 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):

ADB (via Xinhuanet) suggests that inflation for the year could be 4 percent, and that GDP growth [2]could hit 11.2 percent.

Another Bloomberg report adds that the trade surplus [3]“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 [4], 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: