Soaring Inflation in China

As the growing economy of China continues to feed the beast of inflation. If China is unable to tame this issue they will face serious issues with in social stability while the cost of living is rapidly rising. In March food prices spiked an increase of 5.4%. In response to this rise, the government has implemented more subsidies to agricultural farmers to curb the food prices. Out side of China there are other dangers that may arise in a threat to their reputation for low-cost workshop. Another step China has taken to slow down the economy is ordering its biggest banks to put more cash in the reserves. However, analysts feel that more will need to be done to control inflation from spiraling out of control. Ana Foster