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Inflation Fears in China

Aggregated Source: China Challenges
June 2, 2007|

Newsweek reports:

Food prices are a critical indicator of whether China's economy can maintain its five-year bull run without overheating. Historically, inflation is also the harbinger of political unrest (the most recent example was the Tianan-men Square protests, which came to a head 18 years ago this week). Ever since, those who believe China can sustain double-digit growth have pointed to the relative absence of inflation. Now that pillar of the Chinese miracle is under severe pressure. Goldman Sachs and HSBC recently predicted that inflation in China would soon rise to 4 percent, well over the government's official figure and double what it was a year ago.

To read more:

http://www.msnbc.msn.com/id/19000114/site/newsweek/



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