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China exports inflation

A falling dollar, rising energy and raw material costs, and new labor laws are the culprits behind increased prices of Chinese exports, the New York Times reported Friday.

“China has been the world’s factory and the anchor of the global disconnect between rising material prices and lower consumer prices,? said Dong Tao, an economist for Credit Suisse. “But its heyday is over. We’re going to see higher prices.?

While the rise last year was fairly insignificant, 2.4 percent, the United States saw an inflation of 4.1 percent because of higher energy and food costs.

With rates just shy of 5 percent, it may be the end of “ultra-cheap goods, as well as the beginning of China’s rise from the lowest rungs of global manufacturing,? said the New York Times.

Some of the goods affected include toys, clothing, and footwear.