Chinese lending jumps stoking inflation worries

A marked increase in lending in March is raising concerns over future inflation and a new asset bubbles in China, The Wall Street Journal reported. Banks lent US$171 billion (RMB1.06 trillion) last month, up from US$100 billion in February. The sharp rise in lending has economists worried about a surge in investment into real estate and the potential for asset bubbles. The government announced new controls on housing purchases last month. Although CPI fell to 2.1% in March after a higher February reading, some economists predict that the jump in lending rates will translate into increased inflation later in the year.