Chinese inflation causes concern that China will slow growth

The Consumer Price Index (CPI) in China has risen 3.5 percent in the month of August, up from a 3.3 percent increase in July. This increase is due mainly to an increase in Chinese food prices, which account for approximately a third of China's CPI. This inflationary trend has caused concern in the global market that China may slow its growth in order to tame inflation. Doing this would substantially impact the global market because China is currently the driver of economic growth in many other countries. Though, traditionally China has been much more partial to promoting economic growth than to combating inflation, many expect China to raise their interest rates in an effort to prevent domestic unrest in the form of food production employees demanding higher wages.