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
TEXT SIZE - +

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

Multimedia Relatives of South Korean Ferry Victims Fire at Authorities

46 people are confirmed dead, but some 250 remain trapped inside sunken ferry More

War Legacy Haunts Vietnam, US Relations

$84 million project aims to clean up soil contaminated by Agent Orange More

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends 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.
Ukraine, Russia, United in Faith, Divided in Politicsi
X
Michael Eckels
April 19, 2014
There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Ukraine, Russia, United in Faith, Divided in Politics

There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid