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Play now 18 mins

Inflation in China

18 minutes
First broadcast:
Tuesday 18 January 2011

What will rising food and energy prices mean for China?

In the year to November, China's consumer prices rose by 5.1%. Independent economist Andy Xie tells Lesley Curwen that if wages of low-income Chinese do not catch up with inflation, there could be 'a lot more social discontent.'

Plus, former UK central banker, David Blanchflower argues that falling prices pose a bigger risk to the world than inflation.

And the BBC's Mark Tully in Delhi says the crisis in the microfinance industry illustrates the difficulties for businesses operating in India.


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