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

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

This forum has been closed.
Comments
     
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.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid