Biz Brief: China Inflation Pushes Above 3%
Many experts believe that the central government will have to raise interest rates to cool financial activity and increases in real estate prices. Food costs rose by 6.1% and wholesale inflation was up 7.1%, which means higher costs may have to be passed on to China's consumers and trade partners. There is no guarantee that this transfer will work, which could cut into margins at China's manufacturers.
Industrial output in the world's most populous nation slowed to 16.5% in May from 17.8% in April.