Diary

Chinese Inflation

My dad does business in China.  He is seeing a 10% cost increase in everything coming out of China for next year.  He says this is due to price increases within China, currency changes, and increased shipping costs.  He told me this about a month ago, and I thought about passing it along here, but didn’t have anything other than his word to cite.  However, I found this all over the Internet today, so thought I would pass his insight along as well.

Wholesale prices climbed 6.8 percent in April from a year earlier, a 0.9 percent increase over March’s rise. That can lead to a rise in consumer prices down the line as retailers pass on higher costs.

Does this necessarily mean that the prices for everything we consumers purchase from China will rise 10% (and that is a huge percentage of what we buy)?  Maybe, but at least in our experience, retailers have been benefiting from low wholesale prices from China and have not passed that savings along to consumers in all cases.  So, theoretically, they could eat some of the price increase.  We will just have to wait and see.