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.
...
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-inflat...

---

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

http://demopedia.democraticunderground.com/discuss/dubo...

[OlympicBrian]

1. kick

[OlympicBrian]

2. kick

[golfguru]

3. With 12,000,000 more mouths to feed every year

how can food prices not go up???

[OlympicBrian]

4. Not to mention, a swath of our manufacturing base...

Some things are literally NOT MADE IN THE US ANYMORE. Which puts us in kind of a bind, since the China producers are our suppliers. Prices will get passed along back to us, as we have essentially exported inflation to China. All the while, we're still stuck with high unemployment.

Yes, little things like light bulbs and innumerable daily necessities the US imports from China, will go up in price proportionally to that PPI index.