(1888PressRelease)
February 26, 2008 - Yesterday, Beijing announced that the annual inflation rate in the tiger economy hit 7.1 per cent during January - marking the fastest rise in the cost of living for China in 11 years.
The rise has been principally driven by an increase in food prices, which climbed 18 per cent during the month.
It is feared that food price rises will prompt rising prices elsewhere in the economy, and that this could have a significant impact on countries which import high levels of Chinese-manufactured goods.
Stephen Lewis, an economist at Insigner Beaufort, told the Guardian: "The fear is now that a faster rate of Chinese domestic inflation will be reflected in an upturn in the prices of goods China sells abroad.
"In short, China will export its inflation to the rest of the world."
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