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What have contributed to China's inflation? How much?|
List of reasons
1. During the past 20 years: (Money supply)
Chinese government have printed 40 times of the paper money of 1990.
American government printed 3 times of the paper money of 1990.
2. The price of crude oil and other raw materials were rising after more paper money were printed against less growth rate of raw materials production.
The rising prices of raw materials would definitely contribute to the rising prices of end products.
exchange rates: Chinese yuan had apprecated measured by U.S dollar in 2010, but had deppreciated Australian dollar. The price of imported iron ore had risen 35% during 2010.
3. The Fee and Taxes collected by government was rising.
In the latest news reports, truckers protested in Shanghai, farmers in Jinan, Shandong, hung by himself. Many analysis conclude that soring government Fee was one of the major causes.
At last these costs would raise the cost of end products too.
4. The rampant corruption went worse and widespread.
For exmaple the housing market, So many government officials around China in charge of this market were reaveled with severe corruption.
10 years ago, a bribe of 10,000 did work, but now at least 1,000,000 does work.
In China, Many property developers listed the under table bribe involving with the government officials as a special heavy housing cost.
5. high growth of consumption and low growth of product supply?
Actually, high growth of production and low growth of consumption was and is considered as a problem in China according to NBS.
6. more chemical products were used in Food?
e.g. Last year in China, 9.7 tons of antibiotic was used in raising pigs and chicken. But one entrepreneur said that the costs would be raised about 10%~15% if they don't use the chemical products.
7 Foreign exchange reserves (nearly RMB 20 trillion Chinese yuan)
8 stimulus investment by government (RMB 27.8 trillion Chinese yuan in 2010)
Is there anything else should be counted, be weighed too?
How many percentage each factor?