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China Inflation May Ease Yuan Pressure for Hu, Obama

Rising inflation in China that is causing headaches for President Hu Jintao at home may help relieve tensions with the U.S. over the yuan as he prepares to meet President Barack Obama in Washington next week.

Prices are climbing faster in China than in the U.S., making Chinese goods less competitive, Treasury Secretary Timothy F. Geithner said this week. Chinese officials may also seek to speed up gains in the currency, also known as the renminbi, to fight inflation, lowering the cost of imported U.S. goods such as Boeing Co. aircraft and Microsoft Corp. software.