Will Inflation occur in China?

Will Inflation occur in China?
Aug 24, 2007 01:43
LEOPOLD219 Points: Join Date: Feb 7, 2007 Status: offline	The food price is increasing, house price is also skyrocketing and the stock market has exceeded 5000 mark point. Meanwhile, as the barometer of the ecomony, the CPI index in July grew 5.6%. The PPI, a measure of infation slowed down 1% in July. Seeing these data, what do you think of China's economy? Grow rapidly and healthily or become overheating. The central bank of China admits that China's economy is overheated and faces the possible inflation. Thus, it raises the interest rate at the fourth time. The purpose is clear, to curb the inflation. However, it seems that this move does not work well. The stock market has not been affected and people still invest their money in shares. More effective measures are needed. How do you view China's economy? Will inflation occur in China?

Aug 24, 2007 01:43

LEOPOLD219
Points:
Join Date: Feb 7, 2007
Status: offline

The food price is increasing, house price is also skyrocketing and the stock market has exceeded 5000 mark point. Meanwhile, as the barometer of the ecomony, the CPI index in July grew 5.6%. The PPI, a measure of infation slowed down 1% in July. Seeing these data, what do you think of China's economy? Grow rapidly and healthily or become overheating.

The central bank of China admits that China's economy is overheated and faces the possible inflation. Thus, it raises the interest rate at the fourth time. The purpose is clear, to curb the inflation. However, it seems that this move does not work well. The stock market has not been affected and people still invest their money in shares. More effective measures are needed.

How do you view China's economy? Will inflation occur in China?

Aug 26, 2007 22:31	#1
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: Offline	Judging from the current situation of China's economy development, the inflation is possible to break. That is why the central bank has raised the interest rates four times just in one year. It is estimated that more moves will be made to adjust the economy. The interest rate may be raised again. It is good that China has realized the problems and starts to solve them.

Post a Reply to: Will Inflation occur in China?