A potential U.S. recession is giving Chinese policymakers a headache. CNN's Eunice Yoon reports

Investors in Asia went on a wild ride this week. Markets zigzag on fears of a looming recession in the US. Things look a little different in China, though. Our Asia business editor Eunice Yoon has more.

Well, China has chocked a double-digit economic growth for the 5th straight year. But authorities there are trying to slow their economy in the possibility where recession is making their lives that much harder. Buying groceries in China's street markets, these items are getting tougher for people there to afford.

"The price of almost everything is going up and by a lot. "Those rising food prices have helped fuel inflation in China. The latest government figures show inflation hovering at a highest level in more than a decade. The government has been struggling to keep prices of rice, pork, cooking oil and other food staples under control in an effort to keep the economy from overheating. This comes as China deals with the prospect of a US-led global slowdown.

These are uncharterable waters for the country. China is most likely going to suffer from the lag effects of all of the strong measures they have taken in the past year, you know, a half to slow down growth. And that they are really going to start to hit at a time, when they are getting slower demand out of the US. China has been on a campaign to cool its economy, raising interest rates and using price controls.

If properly applied, price control can be 100-percent effective. Now the question is this, is this a good idea? I do expect that the economy will slow down by the middle of this year. And that will lift some of the demand pressures from some of the goods and particularly wages. So the outlook for inflation is quite good.

The latest government figures show inflation eased in December and growth was slightly slower. But the economy still expended at a blistering 11. 2% rate in the fourth quarter. Some analysts say China could help drive world growth in the event of a recession in the US. Still economists point out as economic events unfold around the world, China will be challenged at home, balancing its inflation, fighting initiative with sustainable growth.

And this morning the rapid growth is making Chinese investors a little bit nervous.

Plenty of nerves around the place, Eunice Yoon, thank you very much.