Inflation is an expected and necessary factor in economies. Inflation or deflation beyond expectations, however, can cause devastating effects for individuals and businesses.

On this day, December 10th, in 2010, China’s inflation rate reached 5.1%. The government’s target for the entire year was 3%.

Economic analysts believed that the inflation increase was caused by China’s $586 billion stimulus package that the country distributed two years before. Inflation has been so severe in China in the past that poor families have had to spend half of their income on food alone. This 5.1% jump was the highest in 28 months.