Apparently the inflation problem in China is reaching critical mass. This is going to require a delicate game of tightening which could certainly threaten economic growth in the world’s most important economy:
“Chinese Premier Wen Jiabao has said his government is preparing steps to tame price rises, adding his voice to official efforts to reassure consumers irked by a rapid rise in the price of food.
Wen made the comments during a recent visit to far southern China, the official Xinhua news agency reported late on Tuesday.Consumer prices in the fast-growing economy have been rising at their fastest pace in more than two years, and Wen, the country’s head of government, said his cabinet was planning action to slow inflationary pressures.
“Market supply and demand and prices are a direct interest of the public, and we have to pay a lot of attention to them,” he said while visiting a supermarket in Guangzhou, capital of Guangdong province, according to Xinhua.
“The State Council is drafting measures to curb excessively fast price rises,” he said. The State Council is China’s name for its central cabinet.”
Source: CNBC
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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