Is inflation under further pressure from the enduring drought?

South-west China is currently suffering from its worst drought since 1949. Five provinces in the region have had no significant rainfall for three months and there are no signs of the conditions abating. Supply shortages have caused the price of rice to surge 30% in Chongqing in recent weeks.

China Confidential Funds

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• Financial China

  The Big Three banks – what the future holds

  Select Financial Charts

  Lending to local governments a big concern

• Consumer China

  Baby business booms

  Goodbaby: turning back home

  Only the best for 'little treasures' at Baby Expo

  Mothercare testing the water in China

  Pigeon: Air under the wings from China

  Beingmate hopes to list

• Macro View

  A bust-up averted?

• Capital Intensive China

  Steel demand to stay strong

• The Big Call

  Investment to stay hot

• The Best of Chinese Commentators

  The course of China's exchange rate system

• Funds Data

  Sun rises on Japan

• Guest Column

  Optimism over healthcare and environmental sectors

• View issue