Duncan Innes Kerr from the Economist Intelligence Unit
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Rising food prices driving China inflation higher

China's inflation rate jumped more than expected in October - with prices up 4.4% on the year.

That is nearly 1.5% above the government's target and the highest level in over two years. The data increases pressure on the central bank to further raise the cost of borrowing and allow the Yuan to strengthen at a faster pace - but both moves could put the brakes on manufacturers and the wider economy.

Duncan Innes Kerr from the Economist Intelligence Unit says that food prices are helping to push inflation higher.

  • 11 Nov 2010