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China is experiencing inflation.
Seeings as China is the world\'s factory, why shouldn\'t the middle kingdom export this impact on other country economies as well?
Last year China\'s consumer price index (CPI) was over 6%. The CPI was in the 4% range in 2006. America\'s CPI was 4.1% last year compared to 2.5% in 2006.
China is exporting inflation.
I. America can expect price increases of as much as 10% on some goods
II. When China\'s prices are low, other markets are forced to keep their prices low as well - think Viet Nam, Malaysia and so on. When China\'s prices are up, those factories can raise their prices as well.
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