China’s Inflation Rate Drops to 1.8%
An article is published in The Sydney Morning Herald on May 9, 2014 reporting about the present inflation rate of China. The reason behind choosing this article is it is a contemporary economic issue and significant too. Inflation is an important economic measure which represents the present economic situation of a nation. The concept of inflation and deflation is very relevant in the economic discussion. Additionally, this will give an in depth idea about the theories of inflation and its implications. These are the major reason for selecting the article for composing this essay. In this article, significant information has been published. The annual inflation rate is estimated and declared. It has depicted a significant fall which may be referred as deflation. In April of 2014, it is estimated that the annual inflation of China is 1.8% which is seemed to be the lowest in the last eighteen months. The major implications of the sharp fall of China’s inflation are the major objective of this paper. In the following section, the concept of inflation, relevant theories and the findings of the newspaper article are discussed. Moreover, with the help of the economic theories, the major implications of this incident will be identified.