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Essay: Inflation in China

China’s inflation has been very high for the past few months ranging from an average of 4.3%. This has been noted since 1994 to 2012. With most central banks regarding an inflation rate of 2-3% as being realistic, China’s inflation rate over the years has been excessively high. It was unbelievable when the inflation rate in the country rose to 27.7% in 1994 October.

In 1999 March, a high deflation rate of -2.2% was also recorded. Dealing with an inflation rate of over 4%, customers have to face the challenge as they deal with a great increase in the costs of the products. This becomes more serious when the price increase is done on necessities, with which consumers cannot do without.

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