Continued high inflation is a worry for China’s monetary policy-makers. But higher prices have helped many food producers: real incomes are now growing faster in rural areas than in the cities. Families also seem to have reacted to higher food bills by running down their savings rather than cutting back elsewhere. In other words, the current bout of inflation is not harming consumption and may even be helping to reduce inequality, which should give a helpful nudge to the long-awaited rebalancing of the economy.