China's Inflation Spinning Out of Control

While it's nothing close to approaching Zimbabwe levels, the inflation in China is starting to spin out of control.

Chinese inflation hit an 11-year high in January after rising price pressures were exaggerated by fierce snow storms, official figures show.

Soaring food prices were largely blamed for pushing consumer inflation up to 7.1% last month, from 6.5% in December.

Inflation in China continues to rise despite higher interest rates and other measures by Beijing to keep the economy from overheating.

This is interesting to watch, as the the media savants seem to think only capitalism can have economic problems. So how is the standard of living in the leftwing dreamland known as Communist China?

Chinese leaders have been under pressure to control spiralling food costs, the biggest factor behind historical periods of social unrest in a country where according to the World Bank 300 million people live in poverty.

Yes, you read that properly: 300 million people in poverty, and we are not talking about having to cut off the cable TV here. We are talking serious poverty.

So what are Chinese authorities to do?

Last year, the government also raised interest rates six times in an attempt to keep inflation under control.

Analysts said in light of the latest figures they expected further interest rate rises.

Notice how a story written by socialists about communists does not mention increasing in productivity as a viable option.