China's Inflation Tops 5%, Adding Pressure for Wen to Raise Interest Rates

[OlympicBrian]

Source: Bloomberg

China’s inflation accelerated to the fastest pace in 28 months in November, underscoring the case for Premier Wen Jiabao to raise interest rates again.

Consumer prices rose 5.1 percent from a year earlier, driven by food costs, a statistics bureau report showed in Beijing today. That was more than the 4.7 percent median forecast in a Bloomberg News survey of 29 economists. In October, inflation was 4.4 percent.
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Producer prices rose 6.1 percent in November from a year earlier, exceeding analysts’ median forecast of 5.1 percent, the statistics bureau report showed. Costs of raw-materials such as cement, steel, fuel and cotton have surged, a survey of purchasing managers indicated on Dec. 1.



Read more: http://www.bloomberg.com/news/2010-12-11/china-s-inflation-tops-5-adding-pressure-for-wen-to-raise-interest-rates.html

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Combine globalization (offshoring) and QE2 and what do you get?

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