October's rate increases to 6.5%, despite efforts to restrain price increases.
BEIJING (AP) -- China's consumer prices rose sharply in October, tying a decade-high monthly inflation rate of 6.5 percent, the government reported Tuesday, adding to pressure for measures to cool a politically sensitive surge in food prices.
Food prices jumped 17.6 percent in October over the same month last year, while the price of pork, China's staple meat, soared 54.9 percent, according to the National Bureau of Statistics.
The overall October inflation rate was higher than the 6.2 percent reported in September and matched August's 6.5 percent, the highest rate in 11 years.
"We expect more monetary tightening to rein in inflation, including further rate hikes," Lehman Bros. economist Mingchun Sun said in a report to clients.
Inflation has surged in recent months due to double-digit increases in food prices blamed on shortages of pork and other basic goods
More news from here:
http://money.cnn.com/2007/11/13/news/international/china_inflation.ap/index.htm
Wow, what will China government do to curb this inflation, is 11 years peak. Sorry to say that, it is now the end of Bull run there, i don't think China will allow the bull continue to run, whereby worsen the inflation rate.
The only way is to raise interest rate (or Whatever kind of rate), which will hurt share market badly,
Better stay away from Market for a while first, and after the collapse , then it is time for fishing.
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