Economist expects China’s 2008 inflation to exceed official 4.8% limit

February 22nd, 2008 | Category: Forecasts, China

China’s government said it hopes to limit inflation to 4.8% that year, but said it could have trouble doing so after January 2008 snowstorms worsened food shortages, the Associated Press reported Friday.

The storms, which disrupted food ships, might keep inflation high in February 2008, said Zhou Wenjun, an official of the cabinet’s National Development and Reform Commission, The AP reported. Prices increased at annualized rate of 7.1% in January 2008.

CPI goal: ‘good luck’

Economist David H. Wang told BloggingStocks Friday

that China’s effort is admirable, but structural and monetary policy factors will manufacture it nearly impossible to hold inflation to the government’s stated objective. (Wang lived in China for more than 20 years before moving to the United States for graduate school; he still studies China’s economy.)

Continue reading Economist expects China’s 2008 inflation to exceed official 4.8% limit

Original post by Joseph Lazzaro

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