Diamond Modeling Agencies | Inflation

Diamond Modeling Agencies detects that inflation is moving higher in China. Experts say it stems from the $585 billion economic-stimulus package that it's leaders pushed through in the depths of the financial crisis two years ago. In dollar terms, China's stimulus was much smaller than the nearly $800 billion package the U.S. enacted, but it's much larger as a percentage of the nation's gross domestic product. All of that money sloshing through the Chinese economy has driven the inflation rate above 5 percent. Soaring food prices are of particular concern to China's leadership, analysts say, because a large portion of the population is still living at a subsistence level.

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