D.D's Club

Inflation in Shanghai

It’s March 19,2008. I’m walking home and have to stop to buy a 2 liter of coke. He price for coke has been 6.10 RMB for months, or for at least as long as I remember, given I do the same thing almost everyday.

Today I walked into the store to find the price has gone up. I wouldn’t mind if the price went up a little but when you go and it’s gone to 7 RMB from 6.10 RMB over night that’s a big jump. The lady at the store said that 40% of the things in the store has gone up but the salaries have not. If the prices continue to rise I don’t know what’s going to happen to Shanghai. I think China is big trouble.

The news from Beijing is that’s it’s going to hard and almost impossible to keep the inflation down. When the prices are almost like the states for a coke then something is wrong. The salaries do not match the prices.

China has been so cheap for so long, it’s going to be hard to keep up. The RMB is getting stronger by the day!.