Prices of consumer products in China are rising and such things are complicating efforts of government in tackling slowing of economy as well as navigating the trade war with United States President Donald Trump.
August was the third consecutive month in which index of consumer prices was up and as the increase is not sharp the Chinese economists cites temporary factors like floods and swine flu epidemic have led to it.
A resident in capital city Beijing said the consequence of high price is severe for his family as landlord wants to nearly double the rent of the apartment and which is really high for them.
He added, “We try cook every meal at home (to save money)… I think most middle-income people feel the pressure from rising costs.”
If the prices keep on rising it would turn into a problem for president Xi Jimping and trade war with Trump administration could further make living expensive for people.
As of now the Chinese economists are having a view that there is little cause for alarm.
Deputy director of the National Academy of Economic Strategy in Beijing, Li Xuesong, said flood and swine flu disasters does not have big impact in the country on macros level.
If taken a look at the history of China, inflation has been a major economic and political issue. It is not to forget the protest in Tiananmen Square in 1989 was due to inflation.
However, it is also a fact that for past ten years or so inflation was of little concern for the people and investors in China.
