The effects of the crisis are being felt all over the world: and even the Chinese economy is showing some difficulties, despite that enviable growth of between 8 and 9%. The main problem for the eastern giant is the rate of inflation, the problem is admitted by the premier himself, Wen Jiabao. During his European tour, the impassive prime minister revealed to the Hong Kong press that it will be difficult to keep inflation below the 4% target.
Wen then minimized the problem by recalling the rosy growth results. No alarmism, therefore, but these statements catch the eye. It is the first time, in fact, that the head of the government of Beijing abandons his optimistic attitude, acknowledging an eventuality which, even if already noted by analysts, will not remain without consequences.
In this regard, there is talk of an imminent increase in interest rates on loans and deposits (a measure that could also be taken in Europe in July), to keep price increases at bay and reassure investors. The inflation rate has risen above the 4% target since January and reached a record 5,5% in May.
