The Wall Street Journal reports, “China’s economic growth and upwardly mobile population of 1.3 billion have been irresistible lures for Western companies. But for one significant player, that growth is creating its own threat.”

“Yum Brands Inc. said it expects food inflation in the midteens and labor inflation of 20% in China for the current quarter. The result is that Yum, whose KFC and Pizza Hut casual-dining chains are booming in the country, must struggle to balance low-price appeal with the need to offset the chain’s higher costs.”