News / Asia

China's Inflation Highest in More Than Two Years

A woman, right, pays money to a street vendor, center, for a bag of apple she bought near the vendor's tricycle cart in Beijing, China, 11 Dec 2010
A woman, right, pays money to a street vendor, center, for a bag of apple she bought near the vendor's tricycle cart in Beijing, China, 11 Dec 2010

Consumer prices in China have risen to their highest level in more than two years, as government economic policy makers meet to tackle the problem.

China's statistics bureau says higher food prices pushed China's inflation rate to 5.1 percent in November, up from 4.4 percent in October.

The data comes as national economic policy makers meet in Beijing to discuss how best to tackle rising prices.

Chinese consumers have been complaining about more expensive food, with some vegetable prices, including those of ginger and garlic, rising in November more than 60 percent from a year ago. The government blamed the increase on bad weather and the rising costs of pesticide, labor and transport.

Quick, aggressive steps needed

Economist Stephen Roach of the investment bank Morgan Stanley Asia says Chinese authorities need to take quick steps to deal with inflation.

"The biggest challenge is striking a balance between the near term threat of inflation and the medium term imperative of changing the economic growth structure toward a more consumer-led system. My advice is move quickly and aggressively to deal with inflation," he said.

As a way to curb rising prices, authorities have been trying to reduce excess money in its financial system - an offshoot of a lending spree last year and of prevailing low interest rates. On Friday, China's central bank ordered banks to hold more money as reserves as a way to limit lending, the sixth such directive this year.

Higher interest rates

China also raised interest rates for the first time in nearly three years in October, and economists expect another hike soon. This is another way to limit the amount of money in circulation.

At least one city in China, Kunming, has imposed price ceilings on basic necessities at retailers, including Wal-Mart.

Overall, food prices rose 11.7 percent last month. The U.S. fast food giant McDonald's, which has more than 1,000 restaurants in China, also raised prices by as much as one yuan or 15 cents last month.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches 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.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid