Chinas Inflation Pace

China’s central bank will increase interest rates further in coming months as the three moves since mid-October leave household wealth being eroded by accelerating inflation, mainly due to the international crude prices and the OPEC failure to control them.

The People’s Bank of China yesterday raised the one-year lending rate by a quarter point to 6.09 percent and the one-year deposit rate an equivalent amount to 3.2 percent. The deposit rate remains almost 2 percentage points less than the pace of consumer-price gains, giving savers an incentive to buy goods and assets.

Consumer prices rose 5.3 percent in January