Rising Oil Prices Cause Inflation Concerns in China

This article deals with the rising inflation concerns China is currently attempting to fight. Oil prices worldwide have been consistently rising over the past few months, and this has led to speculation that inflation in China may accelerate. The concern over inflation has caused the Shanghai Composite Index to drop, and investors worry that the government will continue its tightening policy. Consumer prices are projected to rise as much as 5% in April, and the yearlong inflation has a goal of 4%, so this is a major concern. The central bank has increased interest rates four times to attempt to fight inflation, because prices have been increasing at their highest level since early 2008.