China’s inflation flirtation won’t cut debt

Inflation surge: Customers selecting vegetables at a supermarket in Hangzhou, east China’s Zhejiang province. China’s factory price inflation rose again in September, official data showed on Oct 16, indicating the improving domestic demand. — AFP

CHINA is witnessing something most of the world’s major economies haven’t seen in quite some time: rising prices.

With growth strong but debt at 300% of gross domestic product, that’s a welcome sign. The danger is that China’s government now hopes inflation will solve its other problems.