Inflation is hitting the country and much of the debate focuses on price-hikes. China moved from the last period of stiff inflation in the 1990s into a situation that might sometimes more or less resemble those in a market economy. But how to deal with rising prices is an art that still dates from the planned economy, as Shanghai Scrap points out.
Time for some re-education of the officials who have to discover that price-fixing is not done in the open, but like in the West in secretive and illegal meetings that will be prosecuted when discovered by the government.
Meanwhile, prices are really going up. This week I saw the price of my breakfast, mostly a set of baozi's, go up from 0.8 rmb per piece to 1.0 rmb: more than twenty percent.
Update: And the government is starting to investigate price-fixing cartels. As they should.
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