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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1597 |
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Compared to other countries, China's CPI rise is mild and is a far cry from the 25% inflation that spread through China's economy in the early 1990's. Yet, it marks the first major inflation China has seen since 1997, showing how China's booming economy is creating demand not seen in nearly a decade...
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Money supply is up more than 20% this year, fueling inflation by making more money available to spend. Demand for raw materials, such as steel, rubber and cement, has risen. The result is economic growth that could reach 9% this year, as well as surging investment across the economy. The return of inflation is significant to China because it ends a five-year bout with deflation, a fall in China's price level caused by tight credit and an oversupply of goods ranging from rice to cell phones...
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