Subscribe to the BlogChinese inflation hit a 16-month high in February, causing economists to call for the government to tighten the economy to prevent overheating. The annual rate of consumer price inflation rose to 2.7% in February, up from 1.5% in January, and ahead of analysts' expectations of 2.3%.
UBS economist Tao Wang said China may now raise interest rates, which have been on hold since December 2007. Others said inflation was simply lifted by the New Year celebrations.
But, I am personally surprised at the hue and cry this increase in inflation has got. It is indeed a small inflation % and not unheard of in this part of the globe.
But, every time a chinese sneezes, the entire world seems to catch a cold!!