Mobius: No lid on Chinese inflation until 2012

Mark Mobius has warned it will take until the end of 2011 for China to overcome its inflationary problems.

Speaking to Investment Week, Mobius said higher prices in China would put pressure on some retail trade sectors and may lead to increased M&A activity. "The Chinese authorities are very much on top of inflation in terms of taking action, but it will take until the end of the year to put a lid on this," he said. Chinese inflation rose to a three-year high of 6.4% in June despite authorities raising interest rates three times this year and increasing bank reserve requirements. "There is more to come, and there will be higher inflation coming forward not just for China but for the wor...