There are some concerns about the inflation threat in China. The CPI and PPI have been watched closely but not shown any sign of inflation yet (See Graph from Chinatells). However, few people would have forseen that the best performing asset in China of 2009 is Garlic (See ARticle from Economist). Apparently the price of Garlic in JinXiang, which is the main Garlic growing and exporting area of China, has increased by 40 times since March. In addition, the wholesale garlic price in big cities has increased by ten times. No other asset class is even remotely comparable to the price gain in Garlic (See ARticle from the Australian). There are different explanations on the volatility of Chinese garlic’s price. Some refer to the monetary liquidity in China, others point out that it is due to the under invesment in garlic industry in the previous years.