China Continues Fight Against Inflation on Christmas

Chinese leaders have pledged to vigorously fight inflation of the Chinese currency. On Christmas Day the Chinese government made good on its promise by raising interest rates, reported Bloomberg in an article titled “China Increases Rates to Curb Its Fastest Inflation in Two Years.” In November, China’s inflation was 5.1 percent, which is the highest in 28 months. China has already increased banks’ required reserve requirements six times this year in order to battle inflation, according to Reuters in an article titled “China fights inflation with Christmas rate rise.”