Emerging Market Inflation Part 2: China

Sam Sherraden — Tue, 11 Mar 2008 15:10:00 -0400

China’s inflation surged 8.7% in February on the back of food prices, which rose 23%. Snowstorms crippled transportation networks and damaged crops, temporary adding to inflation. But some believe food inflation will bleed into other sectors. The instability that results from this type of broad-based inflation is at the forefront of the leadership's concern. At the National People's Congress last week, Premier Wen Jiabao announced inflation as the first priority of the central government.

Snapshot asks, does China have a temporary problem with food inflation or will inflation spread to other sectors of the economy?

Bloomberg - China's Inflation Surges to 8.7% as Food Prices Soar
Kenneth Rogoff - China may yet be economy to lose sleep over
New York Time - China to Focus on Reducing Inflation, Prime Minister Says
Caijing - Taming Inflation
Societe Generale - China’s policy challenges come to the fore at the National People’s Congress

Emerging Market Inflation Part 1: Introduction

Sam Sherraden — Mon, 10 Mar 2008 15:26:00 -0400

Higher than average inflation in the United States is but a fraction of the inflationary pressures that emerging markets currently face. This week, Snapshot will investigate inflationary pressure from various regions around the world.

In many countries large foreign exchange reserves are putting enormous pressure on monetary growth, which many economists believe is primary cause of inflation. In other countries, it appears rising global food and energy prices are increasing prices.

Snapshot asks, what is the leading cause of inflation, monetary growth or an increase in global demand?

Brad Setser - The great emerging market inflation of 2007 and 2008
HSBC - Emerging economies are repeating our old mistakes
Standard Chartered - A year of growing monetary challenges
New York Times - A Global Need for Grain That Farms Can’t Fill

Emerging Markets

Emerging Market Inflation Part 2: China

Emerging Market Inflation Part 1: Introduction