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Danwei FM
Danwei FM: Inflation in ChinaPosted by Robert Ness, December 6, 2007 1:24 PM
 Some are having to cut back In the West, economists talk about CPI and other economic indicators. In China, when inflation rears its ugly face, the pundits talk about the price of pork and eggs--the first things sacrificed when budgets get tight. Shaun Rein, managing director of China Market Research Group (CMR), shares his insights on recent inflation in China and its effect on the consumer. |
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Comments on Danwei FM: Inflation in China
What is critical here is where this inflation is heading to? It's an interesting detail that the companies are actually compromising on their margins to deal with the rising costs. Then it will become more interesting how long can this situation last and after that? With the profit maximazation as the ultimate goal, the obvious solutions can, in my opinion, come in two--either heading to lower cost sites, or increasing the purchasing power of the consumers. Maybe both of them are happening or there is more?