News / Asia

China Sees Highest Inflation in More Than Two Years

An elderly Chinese couple pushes carts load with groceries as they shop at a supermarket in Beijing, China, 11 Nov 2010
An elderly Chinese couple pushes carts load with groceries as they shop at a supermarket in Beijing, China, 11 Nov 2010

Inflation in China for the month of October rose well above the official target, which is leading to increased pressure on the Chinese government to introduce new tightening measures. Stephanie Ho reports from Beijing.

Official statistics released Thursday show China's inflation rate for October jumped to 4.4 percent, the highest in 25 months.

The highest inflation came in foodstuffs, which saw prices rise more than 10 percent. The official target for overall inflation this year is 3 percent.

Brian Jackson, a financial analyst in Hong Kong with the Royal Bank of Canada, thinks inflation in China has been high, and is still likely to move higher.

"It's been going high for about eight months now, and that is causing a lot of concern for the cost of living for Chinese households," said Jackson. "And I think that is putting a lot of political pressure on policy makers in Beijing to take firmer actions to try and keep inflation under control."

Jackson says one way China can keep inflation under control is to increase interest rates. He adds that strong inflation in China also may also support foreign critics who want China to let its currency, the yuan, rise in value.

"That is going to bring down imported inflation, and help keep prices in general under control," he said. "So, there is a lot of pressure globally on China to do more on the currency, but I think there are some pretty strong domestic reasons for them to move in that direction as well."

At a regular news briefing in Beijing, Foreign Ministry spokesman Hong Lei indicated China is not likely to change its policy any time soon.

Hong says China's currency policy has been, in his words, "consistent and responsible."

Cleaning lady Li Mei says she is feeling the pain of higher prices for staples like salt, sugar, vegetables and eggs.

Li says she had decreased the amount of food she buys. But at the same time, she says if she is used to eating two eggs at a time, it will be very difficult to only eat one.

Mr. Liu, a manual laborer from northeastern Jilin province, says things have become unbearably expensive.

Liu says he cannot afford to buy anything at the moment. He says if he wants to survive, he has to figure out how to spend less money.

He added that life is difficult for ordinary people, and that he would like to see the government do more to help.

Inflation is a politically sensitive subject in China, where rapidly rising prices in the past have caused social unrest. Many China political analysts and economists expect Beijing to try to tamp down prices in the coming months.

You May Like

Video Russia’s Syrian Escalation Tests Obama’s Crisis Response

Critics once again question whether president has been slow to act on Syrian conflict, thus creating opening for powers like Russia More

Ancient African DNA Shows Mass Migration Back Into Africa

First genetic analysis of ancient human remains in Africa suggests massive migration from north around time of Egyptian empire More

NASA: Pluto Has Blue Sky

New photos also reveal the presence of water ice More

This forum has been closed.
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Hungary Criticized for Handling of Refugeesi
Henry Ridgwell
October 08, 2015 8:02 PM
Amnesty International has accused Hungary of breaking multiple international and European human rights laws in its handling of the refugee crisis. As Henry Ridgwell reports, thousands of migrants and refugees continue to travel through the Balkans to Hungary every day.

Video Hungary Criticized for Handling of Refugees

Amnesty International has accused Hungary of breaking multiple international and European human rights laws in its handling of the refugee crisis. As Henry Ridgwell reports, thousands of migrants and refugees continue to travel through the Balkans to Hungary every day.

Video Iraqi-Kurdish Teachers Vow to Continue Protest

Sixteen people were injured when police used tear gas and rubber bullets to disperse teachers and other public employees who took to the streets in Iraq’s Kurdish north, demanding their salaries from the Kurdish Regional Government (KRG). VOA’s Dilshad Anwar, in Sulaimaniya, caught up with protesting teachers who say they have not been paid for three months. Parke Brewer narrates his report.

Video Syrian Village Community Faces Double Displacement in Lebanon

Driven by war from their village in southwestern Syria, a group of families found shelter in Lebanon, resettling en masse in a half-built university to form one of the biggest settlements of its kind in Lebanon. Three years later, however, they now face being kicked out and dispersed in a country where finding shelter as a refugee can be especially tough. John Owens has more for VOA from the city of Saida, also known as Sidon.

Video Bat Colony: Unusual Tourist Attraction in Texas

The action hero Batman might be everyone’s favorite but real bats hardly get that kind of adoration. Put more than a million of these creatures of the night together and it only evokes images of horror. Sarah Zaman visited the largest urban bat colony in North America to see just how well bat and human get along with each other.

Video Device Shows Promise of Stopping Motion Sickness

It’s a sickening feeling — the dizziness, nausea and vomiting that comes with motion sickness. But a device now being developed could stop motion sickness by suppressing certain signals in the brain. VOA’s Deborah Block reports.

Video Making a Mint

While apples, corn, and cranberries top the list of fall produce in the US, it’s also the time to harvest gum, candy, and toothpaste—or at least the oil that makes them minty fresh. Erika Celeste reports from South Bend, Indiana on the mint harvest.

Video Activists Decry Lagos Slum Demolition

Acting on a court order, authorities in Nigeria demolished a slum last month in the commercial capital, Lagos. But human rights activists say the order was illegal, and the community was razed to make way for a government housing project. Chris Stein has more from Lagos.

Video TPP Agreed, But Faces Stiff Opposition

President Barack Obama promoted the Trans-Pacific Partnership on Tuesday, one day after 12 Pacific Rim nations reached the free trade deal in Atlanta. The controversial pact that would involve about 40 percent of global trade still needs approval by lawmakers in respective countries. Zlatica Hoke reports Obama is facing strong opposition to the deal, including from members of his own party.

Video Ukranian Artist Portrays Putin in an Unusual Way

As Russian President Vladimir Putin was addressing the United Nations in New York last month, he was also being featured in an art exhibition in Washington. It’s not a flattering exhibit. It’s done by a Ukrainian artist in a unique medium. And its creator says it’s not only a work of art - it’s a political statement. VOA’s Tetiana Kharchenko has more.

Video Nano-tech Filter Cleans Dirty Water

Access to clean water is a problem for hundreds of millions of people around the world. Now, a scientist and chemical engineer in Tanzania (in East Africa) is working to change that by creating an innovative water filter that makes dirty water safe. VOA’s Deborah Block has the story.

Video Demand Rising for Organic Produce in Cambodia

In Cambodia, where rice has long been the main cash crop, farmers are being encouraged to turn to vegetables to satisfy the growing demand for locally produced organic farm products. Daniel de Carteret has more from Phnom Penh.

Video Botanists Grow Furniture, with Pruning Shears

For something a bit out of the ordinary to furnish your home, why not consider wooden chairs, crafted by nature, with a little help from some British botanists with an eye for design. VOA’s Jessica Berman reports.

VOA Blogs