ChinaÆs bubble trouble

Market watchers concur that inflation in China was up significantly in January this year, a trend that hasn't been seen since 2008.

China's consumer inflation will exceed the government's alarm level this year as housing and food prices rise rapidly, fuelled by aggressive fiscal stimulus. The severe inflation could destroy the country's hard-won growth and lead to the bursting of a massive asset bubble followed by years of decline, several economists warn.

China's growth-driven policymakers should slam on the monetary brakes and slow the growth down, some observers suggest. However, a sudden shut-down of credit could trigger a short circuit...

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