China Inflation Rises to a 19-Month High

[TomCADem]

Source: NY Times

Fresh data from China on Friday further cemented the view that the country’s giant economy continued to power ahead in May — though a marked rise in inflation also raised the pressure on Beijing to step up efforts to damp the booming pace of growth.

Friday’s figures, part of a monthly flood of statistics from Beijing, showed consumer prices rose at their fastest rate in 19 months, at a pace of 3.1 percent from a year earlier. Across China, workers are beginning to strike for higher wages, which could cause inflation to rise further.

Industrial production and retail sales also powered along forcefully, figures showed Friday, while data out on Thursday revealed imports and exports both topped analyst expectations by a wide margin. Property prices continued to soar in May.

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Tools at China’s disposal include a gradual rise in interest rates and an appreciation for the renminbi, which has been effectively tied to the U.S. dollar since late 2008, at what many observes say is an artificially weak level to help Chinese exporters compete internationally.


Read more: http://www.nytimes.com/2010/06/12/business/global/12yuan.html?src=busln

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What happens when China's real estate bubble pops? Is they anything that the Obama administration can or should do about the anticipated collapse in the Chinese real estate market? What happens when millions of Chinese are suddenly underwater?

[DJ13]

1. And they had growth at a bubblicious 11.9% just in Q1

That economy is so hot it will melt down soon.

[Left Coast2020]

2. This worries me a tad...

But I saw Debbie Stabenow on Ed Show tonight and she is introducing legislation to curb their unfair trade practices. She needs support on this. China is one reason we are screwed for no jobs in manufacturing sector. If China increases value of Yuan, we may have a chance to survive this, but its not enough. China's trade policies are the biggest problem that needs to be addressed NOW. Should have been done when O took office. But I do worry about another possible slide in our economy. This needs to be addressed for another big reason: we could go sliding backwards again and really be in deep doo-doo economicly. Damn, I fighting to keep from going homeless in a month.

[David__77]

3. That's not new...

China very frequently has >10% growth. That's fine, they can handle it as they have been. The growth rate will come down a bit as they invest more in social services and environmental protections.