Chinese manufacturers are indeed battling not only with higher energy costs, but rising wage inflation.

That's one reason why wage inflation rose to nearly 20 per cent in the first quarter of this year.

Added to this was rising concern among business executives about wage inflation.

The drop brought with it only insignificant wage inflation, 0.1 percent.

It never did, by the way - virtually every month sees a new record low in wage inflation.

Another change would lower the expected rate of wage inflation to 7 percent from 7.3 percent.

If the numbers are to be believed, wage inflation is slowing.

"It's highly likely that wage inflation will pick up in the quarters ahead."

The flash point for wage inflation is around 5 percent unemployment, which last occurred in the 1960's.

I am expecting wage inflation of 6 to 7 percent by the end of the year.