Chinese CPI inflation rises to 5.1% with food prices leading the way, justifying the concern that QE has led to Chinese inflation

Chinese inflation numbers have come out and it seems like the Chinese concern over inflation was warranted.  They have been barking at the US in general and the Federal Reserve in particular about the danger of the US exporting inflation as anyone who has money to invest is taking it from the US and putting it in emerging markets, with China being the largest recipient. 

Now Chinese inflation is over 5%, which is significant in its own right.  Food inflation pulls that number way up.  Fresh fruits and vegetable prices lead the way with 20-30% price gains over the past year.  Think about that when you buy oranges.  These numbers serve as a warning for any country that spends a high percentage of their income on food, as they do in the emerging markets. 

If we give hypothetical weightings based upon someone who spends 60% of their income on food as the folks in rural China do, we are dealing with inflation numbers over 11%.  Via China Gov:


Item
Same month last year =100
Consumer Price Index
105.1

 
1. Food
111.7
Grain
114.7
Meat, Poultry
109.9
Eggs
117.6
Aquatic Products
111.9
Fresh Vegetables
121.3
Fresh Fruits
128.1
2. Tobacco, Liquor
101.6
3. Clothing
99.3
4. Household Facilities
100.7
5. Health Care
104.0
6. Transport and Comm
99.3
7. Recreation, Education
100.6
8. Residence
105.8

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