Fear of Inflation Spreads Throughout Emerging Markets

Inflation jitters spread through emerging markets earlier this week, prompting China’s central bank to raise interest rates for the third time in four months amid worries that a drought threatening the country’s wheat crop will put further pressure on global food prices. China’s move is just the latest by emerging-market governments, several of which are deploying policies to battle inflation fuelled by rising food and commodity prices, and growth that is threatening to outstrip their productive capacity, says the Wall Street Journal.