FACTBOX: Inflationary stresses confronting Asia

SINGAPORE, July 3 (Reuters) - The rising prices of food and imported fuel are pushing inflation in many parts of Asia to their highest in a decade, weakening trade and budget balances and complicating monetary policy.

Asia's currencies are weakening and asset markets are strained on worries that rising inflation will soon hurt growth, investment and corporate earnings, and destabilise governments.

Here are some details of Asia's inflation, and the policy and political implications.

CHINA

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Inflation - Annual consumer inflation in May fell to 7.7 percent higher from a near 12-year high of 8.5 percent in April and compared with a government target of 4.8 percent for 2008.

GDP - Growth remains strong, at a 10.6 percent annual pace in the first quarter.

Current account - 2007 surplus was $371.8 billion, or 11.3 percent of GDP.

POLICY RESPONSE