Sino File | Rising pork prices hide a far bigger problem for China’s economy

Inflation and economic growth tell us much not only about the health of an economy, but also about how effectively a government is managing its economy.

Measures such as the consumer price index (CPI), producer price index (PPI) and gross domestic product (GDP) are among the most significant factors influencing the economic decisions of governments, investors and consumers.

Inflation and economic growth are two different things, but they are often intertwined. Although inflation does not necessarily translate into economic growth, if an economy is growing consistently, inflation will rise, as rapid growth tends to increase upward pressure on prices and wages.