chinas-bubble-trouble

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 in the recovery, potentially negating the results of the stimulus efforts so far

The country's consumer price index (CPI) is likely to grow by 4 9% (year-on-year) in 2010, exceeding the government's alarm level of...

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