BBC Home
Explore the BBC
BBC News
Launch consoleBBC NEWS CHANNEL
Last Updated: Tuesday, 11 December 2007, 07:47 GMT
China inflation up on food bills
China meat market
Rising pork prices are making many Chinese do without
Price pressures have continued to grow in China with consumer inflation hitting an 11-year high of 6.9% in November, official figures have shown.

Soaring food prices - especially pork, which was up 56% - were largely blamed for the higher-than-expected rise.

Separate government data revealed China's trade surplus slipped slightly in November, but remained close to the record set in October.

The country recorded a $26.3bn (12.8bn) surplus for the month.

More tightening

Earlier this year, the Chinese government set a 12-month inflation target of 3%.

The high inflation figure will fuel concerns that Beijing's efforts to tame rising prices - including a price freeze on some goods - have not been enough.

"Going forward we expect (consumer price) inflation to remain sticky," said Goldman Sachs economist Hong Liang.

"We expect the central bank to respond to the strong inflation data with additional tightening measures including strict control on bank lending, further withdrawal of liquidity, one more rate hike before the end of this year and allow a faster pace of currency appreciation in 2008."

Trade talks

China's trade surplus for the first 11 months of 2007 has now reached $238.9bn, up 53% on the same period last year.

The latest figures came as senior US and Chinese officials met in Beijing for trade talks - where calls for China to reform its currency are likely.

Critics - especially in the US - say that the yuan has been allowed to remain weak in a bid to boost exports to the US while making American products more costly in China.

The EU has also been pushing for action on the currency as it makes it harder for European manufacturers to compete with their Chinese counterparts.

China's total exports in November increased 22.8% year-on-year, while imports were up 25.3% to $91.3bn.

The surplus fell just short of October's record $27.05bn.

Consensus ahead of US-China talks
10 Dec 07 |  Business
China trade surplus at fresh high
12 Nov 07 |  Business
China moves to cool its inflation
11 Nov 07 |  Business
PetroChina is world's top company
05 Nov 07 |  Business
Mandelson warning on China trade
17 Oct 07 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific