Thread: China Inflation Spike Set to Rock U.S. Consumers

China Inflation Spike Set to Rock U.S. Consumers

Friday, Feb. 1, 2008 3:18 p.m. EST

We’ve seen cheap Chinese toys and food products flood U.S. shores. Now American consumers are seeing another, altogether unwelcome new export from China — inflation.
The price of Chinese goods sold in the U.S. is rising, the result of higher energy and raw materials costs, increasing regulation there and a declining dollar, according to a new report from CNN.

The price increase over the last year was only a "modestâ€

On the positive side this will help to bring industries back home to our shores. As transportation cost go up, comodities needed for production goes up and they also have to be shipped, this makes it more feasible for local production as opposed to products from half way around the world or from the town next door.

We don't need their junk anyway!

All this, of course, depends on whether Chinese factors can convince wholesalers to pay more for their goods and whether retailers in the U.S. will be able to pass on the higher costs to American consumers.

Well, there goes the 'everyday low prices' at walleymart.