The World - News from April 27, 1986

Chinese economic reforms have increased the output of consumer goods but have also caused high inflation, a worsened trade balance and a drop in grain production, a CIA study said. The assessment, released by the congressional Joint Economic Committee, noted that inflation, as measured by Chinese price indexes, tripled in 1985 to 8.8%. Production of such consumer items as washing machines, television sets and refrigerators increased more than 50%, the CIA said. Grain output dropped 7%, the result of reduced acreage, flooding and bureaucratic confusion.