China heading for high inflation
China’s central bank has been forced to increase the interest rates further since their inflation number has reached a record high of 8.7% in February 2008 which is a 11 year high. This has been mainly due to the high food prices, which is again due to the increasing disposable income in the hands of more and more chinese people across their country. This has been due to the excellent economic growth recorded by China in the last five years.