economy - Highest inflation since 1997

Consumer prices went up 5.3 percent in July, the highest level since 1997, domestic and foreign media tell us today. The record inflation sparked off speculation on a possible spike in interest rates. The central bank, the People's Bank of China, said in the past this would be possible when the inflation would pass the 5 percent threshold.
Inflation is one of the signs of an overheating economy, a tight labor market and high trade deficit are two other criteria. The economist Joseph Stiglitz said only last month in Shanghai that China was on all three counts not yet in the danger zone.