Results tagged “inflation”

From JLM Pacific Epoch comes rumors that China is planning to issue a new RMB 500 bank note in November - one which would feature the face of Deng Xiaoping. Currently, the most valuable note you can get in China is the 100, which can get kind of ridiculous considering how many deals are still done in cash. Still, the chances of this rumor proving true are pretty darn low. Not only has the People's Bank of China gone out of its way to deny plans for a 500, it's also not the first time we've seen news like this circulate. Still, we do find JLM's take on the psychological impact even speculation of a Deng has on the market interesting. In their words, the "big banknote... mirrors a big problem": the frailty of China's economic recovery considering its basis in loosey goosey monetary policy.

From CCTV:

Easing inflation over the last few months may be good news for China's power regulator. It's saying continued falls in the growth rate of the Consumer Price Index leaves ample room for hikes in the retail prices of electricity.

Continue reading "China may raise retail electricity rates"

"Coca-Cola Co plans to seek approval under China's antitrust law for its $2.5 billion bid for top domestic juice maker Huiyuan, the final obstacle to what would be the largest foreign takeover of a local firm."

From Beijing-based techie Frank Yu: "iPhones for sale in Beijing. 1st Gen 8 gig iPhone USD 735. 2nd Gen 8 gig 3G iPhone USD 1,176. The Older iPhones rose almost 42% since 3G." [Source]

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Effective today, China will raise gasoline and diesel fuel prices 16 percent and 18 percent, respectively, news that sent global oil prices down nearly US$5 a barrel. Electricity prices are also expected to rise sharply. Reuters offers a poorly displayed chart that shows China's domestic gasoline prices, fixed since November 1, have climbed 95 percent and diesel prices have more than doubled since 2003. Retail fuel prices in China are expected to increase to $3.05 per gallon for gas and $3.31 for diesel. Says the New York Times, "Costlier fuel and electricity could prompt businesses and individuals across China to use less of it, slowing somewhat China’s voracious increase in oil consumption in recent years as well as its steep rise in emissions of global warming gases." [Sources: AP, Reuters, LAT, NYT, CNN]

We know that this sounds like an April fool, but China could be facing a rice shortage. No, seriously. We told you a few days ago about KFC upping their prices; now the cost of the other staple in Shanghaiist's diet, rice, could be facing a hike due to fears over supply. For the moment, the government has frozen the price of rice — as well as that of other goods such as cooking oil — in an effort to curb food costs following their 23% leap in February, but has not ruled out price rises in the near future. They have also announced that farmers will receive increased prices for both rice and wheat as China attempts to avoid the rice production problems currently engulfing some other Asian states.

BBC's take on inflation in China includes footage of the Chongqing Carrefour stampede for cooking oil that we haven't seen before.

A stampede in a Chongqing Carrefour hypermart has left 3 dead, 24 injured and another 7 seriously injured. The culprit? Cooking oil. As part of its 10th anniversary celebrations, a 5-litre bottle of cooking oil that was originally priced at RMB51.40 was to be sold at only RMB39.90. This news was enough to get Chongqingers to start queueing from as early as 4am in the morning. Sometime around 8.20am when the doors were finally open,...