• Bloomberg


Economic growth in Japan is at risk as soaring costs of raw materials squeeze profits, forcing companies to cut spending and wages, economists said.

Growing demand in China and other emerging economies is causing higher fuel and commodity prices worldwide, threatening to fan inflation in Japan and elsewhere. China’s economy, which may overtake Germany’s as the world’s third-biggest this year, expanded 10.6 percent last quarter and inflation was close to the fastest pace in 11 years, according to reports released Wednesday.

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