August 21, 2017

China inflation hits three year high

Chairman Mao say - if leaders live in luxury while people starve they will get revolution up their butts.

China’s inflation rate has hit a three year high in June despite government efforts to dampen it and a cooling economy.

Consumer prices rose 6.4 per cent over a year ago, a sharp jump from May’s 5.5 percent rate. The main driver was food prices that leapt a whopping 14.4 percent up from 11.7 percent in May.

Communist government leaders have declared taming prices their priority this year, but inflation has steadily risen even as economic activity gradually eased following repeated interest rate hikes and other controls. A bit of deja vu here, the Chinese leadership said the same thing last year.

The increase was predicted due to the summer flooding in China that damaged crops and pushed up the price of pork, vegetables and fruit.

If food prices don’t get brought under control then the government is going to be facing a huge backlash from a huge population.

Only a small percentage of China’s people are benefiting from the economic boom. The rest of them they are getting the inflation but not the income to cope with it.

It is no good the leadership wondering what Chairman Mao would say, because Mao endured years of deprivation and war to overthrow the capitalist dictatorship that his party has become.

Newswarped thinks he would not be amused. But then again he was a chap who presided over millions of his own people starving because of his theoretical economic policies. See the capitalists and the Communist are not that far apart on some things.