Yesterday the Chinese government raised the price of fuel by 18% (a raise like that, here, in one go, would bring the government down) and with inflation running at 7.7%, together with the Asian Stockmarkets falling i fear bleak time are ahead.
"His Masters Voice" said, over on his blog, that, the purchase of the property down at Behai, had cost him an extra 50,000 rmb because of the difference in the exchange rate between the start and completion of the sale.
On a more selfish point, i'd guess that at least 60% of things purchased here in the UK are "Made in China"....what will these cost in the future?
I'd guess that the boy's over there must be noticing the change in their cost of living, i know that the wife's family are talking about it. When we went back last time my wife (Weiyan) was shocked how must things had increased in one year, many of our friends had'nt noticed it because the changed had happened slowly over the year, but they say that you can notice the change from month to month.
Many people have said that China could'nt sustain such a rapid growth. It's such a shame that, after the cost of the olympics the country has had to bear the cost's of the bad weather during the "Spring Festival" and now the Earthquake and then on top of this the raise in Fuel costs worldwide.

I hope that the Government gets it under control

John

It's time to wake up and smell the coffee. Are memories so short that forgotten are the days when Japan saw a jump in the inflation rate? Today things in Japan are very expensive. Next is Taiwan where prices are as high as anywhere. We now go to South Korea where the same thing has happened. Fast forward to China, did you really expect things to remain cheap? History repeats itself. You can rationalize this in many ways but the bottom line is, it's no different than what happened in other countries. Oh, India is not far behind. Things will be made in other 3rd world countries and will be cheap for a while and then it starts over.
Don't worry the first hundred years are the hardest and then it's all downhill. That's only if you make it to 100..
Don't outlive your money......

Hi John,
In the UK I pay £1.18 for one litre of unleaded petrol. This is $8.82 for one US gallon. Isn't it time the US woke up and smelt the coffee???? I'm sure you would remove your government if they asked you to pay so much in the USA. It is time you stopped being subsidised by slave labor in Asia and the Far East.
David

This is what happens in any developing economy. At first the economy does very well because labour is cheap and companies move work into the area. Then standards of living rise and the workers have higher expectations and demands. Eventually the cheap labour becomes not so cheap and some of the work moves to another developing country where it is still cheap. The economy slows down, unemployment increases, but local prices remain at the higher level.

One edge to inflation is to buy property. This is bought in local currency and if the pound weakens you will get more pounds when you sell the property and convert the money to sterling.

Things are noticeably more expensive than 2 years ago. But prices are still a lot lower than the UK and it is still a wonderful country.

Graham

muethu28,
You seem to have missed the gist of my post so I will address your concern which is only the drop in the ocean.
Europe has always paid more for gas. Here in the US gas is over $4.25 a gallon. My wish is that it goes to $10 a gallon or more. Maybe then the #@$%^# politicians will be forced to allow drilling in the US. There's lots of oil on & off shore. To many Americasn love the Liberal Democrats and follow them like sheep as long as they are told what they want to hear. Politicians are like diapers, they're full of shit and need to be changed often. You bring up slave labor, why don't you start another thread and I'm sure there will be lots of commentary.

Johnd12340,
How can we outlive our money? We have wives who spend it faster that we can make it!

America as got this NIMBY approach to pollution and drilling for oil: let's buy it from the middle eastern countries and not bespoil our own fair land by starting extracting from new reserves. But one day that will change. Anyway, we should leave political comments for other forums or move this to The Vault.

Sorry, no one mentioned slave labour. Just cheap labour. There is a vast difference.

The original thread is about inflation in China.

Graham

Chinatyke, Please re-read muethu08's post again, Notice the word SLAVE. Here's the quote "It is time you stopped being subsidised by slave labor in Asia and the Far East.
David"
If you want cheap oil then you must drill for it. If you want to keep you land pristine then PAY THE PRICE AND STOP THE WHINING. You can't have your cake and eat it. Now wasn't that simple.
Outliving your money is easy and according to you your wife is helping you along. I thought you married a Traditional Chinese woman, I did and practically have to force her to spend money. I do know what you mean as my first wife spent it before I earned it.

Hi John,
The US has vast oil reserves which their governments have been unwilling to exploit, preferring to use imported oil until this runs out before extracting their own reserves. We do have oil offshore in Scotland which is brought ashore and refined in Scotland but the Government based in London adds a tax of about twice the price of the oil which is why petrol is so expensive here. Perhaps if the US government levied a similar tax then US citizens would not waste so much energy.
My point about the US being subsidised by "developing" economies is that the people producing the goods sold in the USA are paid less than one dollar a day. This is barely enough to feed themselves even when they work 16 hours a day. Don't you feel ashamed of exploiting people in this way?
And yes I said "slave" labour because these people are often locked in the factories 24/7 until the orders are completed.

IMHO, the earth will run out of oil when the oceans dry up. As I have said here and elsewhere, I hope gas goes to $10 a gallon or higher, then maybe our @#%#$%@# politicians will lift the ban on drilling for oil in the US.
To address your comment about exploiting people. First I am not apologizing as I have nothing to apologize for. Second IF you're referring to China, NO ONE works for $1 a day. ie. In Guangdong the shoe capital of China the average worker [previously a farmer] works for $36USD a week including room & board. Not a bad salary for unskilled help that had to be trained to make shoes, sneakers etc. I have no knowledge of what goes on in India but I would assume it's almost the same. Using China as an example, isn't it the Government's responsibility to mandate higher wages and prices for exports???? Businessmen always look for cheaper prices, that's just good business. RCA was the first company to go to Japan to have CHEAP TV's made, shortly after that everyone followed suit. That lead to other products and when Japan's prices began to rise, they looked elsewhere. In came Taiwan followed by Korea and when their prices increased, Guess what-- China and then India. So now who is exploiting people???
Stop with the rhetoric and post FACTS that you can back up.

Rhetoric is OK, I like a bit of persuasion sometimes. Facts are not always essential to meet the demands of this forum - Information Rich is the requirement.
Lets not all fall in the trap of expressing our opinions as fact would be more to the point.
But John is right to some extent, if facts are used, they need to proven or at the very least, referenced.

I would like to reply to some of the comments made in this column, but I fear that it would upset some people, so I will just sit here and mutter to myself...

Hi John,
I watched a BBC TV Documentary last week about the biggest Chinese restaurant in the world. It was filmed within the last year. One of the employees was earning 1300 RMB a month, living on the 300 and sending the rest home to pay for her sisters' University education. Her father stated that his annual income was 2000 RMB. At todays exchange rate that is $291 a year which is definitely less than one dollar a day....
This programme is available on www.bbc.co.uk
Actually the "slave" labour I was referring to was in the garment factories in India and Pakistan.
I also have a friend in Kenya who is a Primary school teacher and her salary is £40 a month to feed, clothe and house herself and six children. Of course this is almost 2 dollars a day but IT IS to support a family of seven.

Hi mutheu08,
I watched the UTube version. The employee who earns 1300 RMB's a month translates to $46.42 per week. That's pretty good pay in China. I doubt the fathers salary as there aren't any details.
As to India & Pakistan, they must be cheaper than China. If you re-read my previous post, that's what happens when a country starts to prosper.
This thread seems to be in the beginning stages of a Pissing Contest which I will not participate. If anyone feels badly and wants to help these poor people in 3rd world countries, I would suggest that they contribute all their money to the many charitable organizations who will gladly take it. Second, they should join the Peace Corp or some such organization and do volunteer work for FREE.

A friend of mine in Chongqing is a heart specialist, monthly salary is 2100 rmb per month, so use that as a guide for various wages and for new guys balance that against what you may be told the woman you are writing to says she earns.

WHen I was in Yanghsuo Guangxi, A youg lady who conducted a cooking class I went to said that her parents were farmers and they sold what was left over in the form of grain and other produce. In a good year they made 3,000 Yuan, obviously they lived off of what they produced on the farm and this was profit. The 30 year old lady who was managing the hotel I was staying at said that she earned 1500 Yuan a month and had two days off a month. She said that some of the other ladies working at reception only got 700 yuan a month. I know the lady in Nanning that I visited finally let out that she earned 600 yuan a month. When I had asked her how much she needed to live for a month she had said 1,000 yuan. I had asked her this as I decided to pay for her living costs so she coud study English full time. She told me four months later that she had stopped English classes two months previously because the teacher had a bad accent.

In the east of China there are people who seem to be well paid given their cars, dress and accomodation.

Marcus

Pirieport makes a good point about the farm scenario. Here in the US, small farmers live well regardless what you may have read in the newspapers. Everything in their lives is considered farm equipment, this includes personal things also. The vehicles, repairs etc. and gasoline are all business expenses. They have 1st priority on gasoline in the event of any type of shortage or rationing. Obviously food is part of the package. Large companies purchase their complete crops [seeds provided by the company]. In the milk industry all the milk is purchased either by a cheese manufacture or a co-op. It's a win win situation with little risk. China's farmers may have a similar situation and it's not as bad as it's portrayed to be. One more thought, many Chinese are out to fleece the Westerner [after all Westerners are considered Rich] and cry poverty. Take a look at other sites where men are sending money to girlfriends and or wives because they are told their parents need to be supported and a whole plethora of reasons. My opinion--Bull Chips.