China's issues warning on inflation

China's moves to tighten credit and drain liquidity from the markets are beginning to have an effect on the country's overheating economy, according to a report by Voice of America news. Industrial growth has slowed for the fifth month in a row, and other economic indicators are also coming off the peak, says the article.

However, the central bank says inflation, which rose 3.6 percent in the first half, is set to rise even further in the third quarter before easing off in the final three months

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