Chinese inflation hits 4.9% pushed by high food prices

[Viva_La_Revolution]

Source: BBC

Inflation in China has accelerated in January despite three interest rate rises in the past four months.

Consumer prices rose by 4.9% in January from a year earlier, the National Bureau of Statistics said. In December, the annual figure was 4.6%.

The figure was less than many economists predicted, but close to November's 28-month high of 5.1%.

Inflation and rising food prices are a concern in China where poor families spend up to half their incomes on food.

Read more: http://www.bbc.co.uk/news/business-12461138?utm_source=twitterfeed&utm_medium=twitter

[smiley_glad_hands]

1. Unpeg your currency from the dollar china, and your inflation problems go away. eom

[thelordofhell]

2. Plastic rice is expensive

[WatsonT]

3. One of the reasons I'm not too worried about the chinese colossus

taking over the world (ala Japan in the 1980s).

They still have crippling poverty in most of the country that needs to be addressed. And the workers are only going to tolerate their wealth being pumped out to the rest of the world for so long before they start demanding a better standard of living for themselves. Their exports will fall relative to their imports and their entire export based economy will start to contract. They will end up restructuring to provide greater domestic production and services and will remain wealthy and powerful nation, but not one growing at 10% a year.

And then all the cheap manufacturing jobs will start heading to the next third world sweatshop-nation (already have in many cases)