China's soaring inflation rate is the highest in a decade, putting pressure on the central bank to hike interest rates for the fifth time in six months to cool China's superheated economy. Food prices have jumped 18%, raising fears of public unrest., Bloomberg reports. Consumer prices rose across the board 5.6% in July from a year ago, and 6.5% in August..
Rents are also rocketing. The trade gap widened 33 percent to $24.97 billion in August, the second-highest monthly total ever. The stock and property bubbles could get bigger and "eventually crash," warned a top economist. "The government should do something significant like raising interest rates to signal they're serious.''