China's explosive economic growth is leading to shortages of migrant labour among the country's 1.3bn people, economists and government officials are warning.

The shortages, confined to coastal areas and believed to be temporary, challenge conventional wisdom about China's manufacturing prowess, based to a large degree on a limitless supply of low-cost workers. They also add to concerns about inflationary pressures on the Chinese economy. China last week reported the highest rise in consumer prices in more than seven years at 5.3 per cent, although the figures were affected by comparisons with last year's outbreaks of severe acute respiratory syndrome.