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China's 2% Inflation Feels More Like 20% to Big-City Renters

  • CPI fails to capture the 27% home price surge in mega-cities
  • Central bank checks more gauges when making policy decisions
Residential buildings in Beijing.
Photographer: Qilai Shen/Bloomberg
Updated on

Project manager Yuan Fang says she’s cutting spending and working overtime after a 20 percent surge in the cost of both her Beijing room rent and her favorite Japanese lunch boxes. Civil servant Neo Zhu, who bought an apartment in the eastern city of Hangzhou 10 years ago, feels costs of everything from gas to food are stable.

Yuan is putting her savings into gold to protect them from inflation. Zhu is confident his extra cash will be protected in a fixed-income fund.