China’s central bank head sounds inflation alarm

The governor of China’s central bank has sounded the alarm on inflation, saying the Asian powerhouse must be “on high alert,” reports FT.com.

“Speaking the week after China reported a jump in inflation to a 10-month high of 3.2 per cent, Mr Zhou said the increase in prices had been larger than expected and that experience had taught him not to delay the fight against inflation,” the report says.

Meanwhile, FT.com is reporting the U.K. is concerned about the dreaded worst-case scenario – stagflation.

“Investor fears that the UK could be simultaneously hit by stagnant growth and high inflation, as experienced in the 1970s, were exacerbated by poor economic data pointing to the probability of another economic contraction in the first quarter of this year,” the report explains.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.