One of the biggest worries for the People’s Bank of China (PBOC) is Chinese inflation. Higher Chinese inflation might lead to unrest by citizens. However, over the last few years, Chinese inflation has decreased appreciably, giving the PBOC more room to work with. As long as Chinese inflation remains stable, this augurs well for a society without too much upheaval. If Chinese inflation were to re-accelerate, the PBOC would have to step in and attempt to reduce pricing pressures.