The Outlook Weekly of Xinhua published an article from an official, associated with the State Development Planning Commission who asked a question. Earlier some Chinese economists remarked that China might benefit from a moderate 5 to 6% inflation rate. The article disagrees. “Currently the Consumer Price Index is rising slowly, but the prices for consumer goods and monopolistic items are increasing at a rapid rate. If the target for an overall price increase is set at 5% to 6%, the so-called moderate increase, economic development and social stability would suffer damaging consequences.
Source: Xinhua, July 5, 2010
http://news.xinhuanet.com/fortune/2010-07/05/c_12299505.htm
