It's official: China may experience intense inflationary pressure China is expected to face intense inflationary pressure in the future, due to higher costs. Highs and a global abundance of money supply, declared a senior Chinese official in an article published Tuesday. He indicated that inflation in China is also the result of excessive global liquidity derived from lax monetary policies (low interest rates) adopted by developed countries, the expansion of China as a lender (lends), and a huge accumulation of funds from foreign exchange. The Chinese consumer price index (CPI), one of the main indicators of the inflation increased 4.9% annually in February, the same as in January. The data from the CPIs for March are released this week and are estimated to show an increase of more than 5%. Source: China Daily, April 12, 2011. Explain the inflationary spiral that China could experience, depending on the type of inflation that is presenting, arguing how each indicator identified in the text contributes to the type inflation in China