Factor inflation shows overheating

• Published 04 Mar 2010

An almost across-the-board rise in industrial input prices shows the structural nature of China's inflationary pressures, obliging Beijing to maintain vigilance against overheating.

Inflation is China's big potential economic show-stopper. If it gets out of control, or remains stubbornly high in spite of official attempts to rein it in, Beijing may have to slam on the monetary brakes, risking a more general slump in economic activity and potentially puncturing frothy property prices in first and some second tier cities.

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