The Red Giant’s economy has seen a higher inflation during the month of March, sending waves of concern in the global markets. China has seen an inflation figure of 3.6%, which is well above the expected numbers for the CPI. The CPI index or the inflation number, as it is commonly popular, will indicate how the prices of various goods increased in an economy, over a period of time.
China’s increased figures are mainly attributed to the volatile price of food items. Oil prices have also been said to be a major contributor to the inflation. The country had raised the retail prices for gasoline and diesel on March 20th. This rise was the second hike done in a period of six weeks.
Markets worldwide have taken cues from this emerging news. The markets in Asia sunk during the Monday trades. Most of the Asian markets, including the Indian Bombay Stock Exchange (BSE), closed 1% down in the trades, on concerns of the Chinese economy.
On Friday, the world’s second largest economy is expected to announce its growth numbers. Analysts expect the Chinese GDP numbers to be around 8.4% this time. These figures are below the 8.9% growth trajectory seen in the same quarter last year.