China and Core Inflation

From the Wall Street Journal:

China has a serious problem. In February, consumer prices were up 8.7% from year-earlier levels — the sharpest increase in 12 years. China’s policy makers are rightfully concerned about this outbreak of price pressures. Unfortunately, they are getting bad advice from so-called experts who have been asked to weigh in on this key issue.

That was painfully evident at the recently concluded China Development Forum in Beijing — a three-day conference held annually since 2000 that has become one of China’s most important platforms for open policy debate. Scheduled to coincide with the ending of the National People’s Congress, the CDF provides an opportunity for engagement between a relatively small group of domestic and international academics and business leaders and many of China’s top officials — from the premier on down.

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