Inflation Scare

What has spooked the world is China’s inflation which has soared to its highest level in over 11 years. Inflation spiked to 7.1% in January 2008, pushed up by an 18.2% rise in food prices.  Last year, China raised interest rates six times and, over the past 13 months, increased the amount of money commercial banks needed to set aside in reserves by 11 times. A temporary cap was also put on...

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