2007 China Inflation
Being Paid in $US = Ouch
Ah… sometimes living in China and getting paid in a fixed US Dollar salary is not such a good thing. Especially when the dollar continues to slide while prices in China continue to rise.
China Inflation Rose Since Going Home for Christmas
I noticed when coming back from the US to China that certain prices had actually gone up while I was gone. Don’t ask me which ones (it was the prices in Shanghai KFC restaurants - although I think metro fares also went up, as it now costs four RMB to get to a place it just recently took three to get to).
This short piece says that prices will continue to rise in China (no surprise), although by less than I would have predicted. And with the dollar falling in value as well, I may well see about a 10% increase in personal cost of living (inflation in China + more expensive RMB) across the board by the end of the year. Ouch. Anybody else getting hit with the same problem? Here is the prediction, translated from this week’s Modern Weekly:
The cost of living will continue to rise in China during 2007. According to a prediction by the China National Information Center, the China consumer price index, or CPI, is set to increase 2% in 2007, slightly faster than last year. Among these price increases, the increase in food prices may accelerate the most in China this year.
See this newer post for an update on actual China inflation in 2007 as of the middle of the year for more recent information.
