China’s drought in southwest: A harbinger of inflation worries

March 31, 2010 at 11:54 am Leave a comment

Southwest China’s drought has brought about an increase in prices of agricultural products like rice and even metal prices like zinc due to lack of water for ore processing.

Electricity prices may also be raised if other sources can’t make up for shortfall in hydropower.

The question raised is will it spread to other parts of China. If so, China’s government may be forced to act.

They better pray that the drought is not followed by endless torrential rain which could affect agricultural and metal production.

Entry filed under: Watch your step. Tags: .

Who says small caps aren’t sexy? If the incentive is wrong, the behaviour is likely to be wrong too

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Recent Posts

March 2010
M T W T F S S
« Feb   Apr »
1234567
891011121314
15161718192021
22232425262728
293031  

Archives

Blog Stats

  • 37,483 hits

%d bloggers like this: