inflation in china is rising at a fast pace - home appliance manufacturer

by:Yovog     2019-08-20
inflation in china is rising at a fast pace  -  home appliance manufacturer
Written by keith bradshersept.
Hong Kong-No. 2010For K. K. Lam, a 37-year-
Old accountant in Guangzhou, inflation means pork and vegetable prices like bok choy are rising.
For Alan Dong, sales manager of a home appliance manufacturer 700 miles northeast of Ningbo, inflation means trying to convince retailers to pay more for dehumidifiers, so that his company can pay the rising cost of wages and raw materials.
From the street market to the office of the company, Chinese consumers and executives are struggling to cope with rising prices.
China's consumer price is 3, the National Bureau of Statistics announced on Saturday.
A year-on-year increase of 5%, the biggest increase in the past two years.
Even worse, inflation seems to be accelerating in the short term.
The comparison between the price in August and the price in July adjusted by seasonal factors shows that the annual rate of inflation is close to 4. 8 percent.
For reasons that many Americans or Europeans may envy, advertising prices in China are rising.
According to other statistics released by the government on Saturday, the economy is growing, stores are full and banks are lending.
Industrial production increased by 13 compared to last August.
Retail sales increased by 18 in 9th day of last month.
Bank loans climbed by 18, 4%.
6% and fixed-
Investment in assets surged 24%.
The growth in the four categories of advertising was slightly higher than economists expected, the latest sign of a strong Chinese economy, although elsewhere the recovery seems to be weakening.
Another data released by the General Administration of Customs on Friday showed that China's demand for imported goods also remained surprisingly strong.
Last month, the trade surplus narrowed to $20 billion. without China's $18 billion surplus with the United States, the trade surplus would be close to balance.
But large amounts of cash chasing a limited number of goods in China's economy are pushing prices higher.
Inflation is starting to get into trouble, especially for young people entering the labor market and those who retire on fixed income.
Today, young people with a vocational school degree usually earn $200 to $300 a month in factories near the coast, while in mainland China the figure is slightly lower.
The rise in prices has prompted many to demand higher salaries, while the blue ones --
White-collar incomes grew faster than inflation.
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But in coastal areas, fresh college graduates are paid between $300 and $500 a month, and have actually fallen in the past few years, even before inflation adjustments.
The rapid expansion of universities over the past decade has led to more young men and women with undergraduate degrees than companies are prepared to hire, except for lower pay.
Like many countries, retirees are most vulnerable to inflation. Ms.
Lin says her own mother lives on a pension of only $150 a month.
Rising wages put pressure on companies to increase prices. Mr.
Dong, sales manager of Ningbo Deye home appliance technology, said the company must raise wages by 10% a year, while the cost of raw materials is also rising.
"It is not possible to completely transfer our cost growth to our customers because they will all run away if we do," he said . ".
"We are currently working on our assembly line workflow to see where we can get more efficiency.
Advertising, but strong growth as a fixed asset
Last month's investment in assets showed Chinese companies were still coping with rising prices by building more factories, office buildings and other equipment, rather than cutting spending.
Pan Ning, sales manager of Shantou-based bag and pocket calculator maker Newsunda Industries Company, said labor and raw material prices had risen by 5 to 10%.
But with the beginning of the academic year around the world in the northern hemisphere, Newsunda has been able to raise the price it charges to cover the increased costs, MadamPan said.
For years, Chinese officials have said they believe 5% of inflation is unacceptable, and they have shown that they are willing to limit bank lending and investment whenever annual growth approaches that level.
They have taken some steps in recent months, but have recently relaxed lending controls because some Chinese economists believe domestic demand may not be as strong as the August data showed.
At present, many Chinese consumers are angry about the rise in commodity prices.
"To be honest, I don't know how young people start from the world of work . "Lam said.
She said that they paid nearly half of their room in a shared apartment in a bad neighborhood, "If you increase food and transportation, there is nothing extra in your salary to send home.
Wang has contributed to Hong Kong's report.
A version of this article was printed on page A12 of the New York edition on September 12, 2010, titled: The rapid economic development has raised prices in China.
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