[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 13 August 2007, 06:22 GMT 07:22 UK
China inflation hits 10-year high
Chinese food store
Chinese food prices rose sharply last month
Chinese inflation soared to a 10-year high of 5.6% in July, led by a sharp increase in food prices.

The price of pork and other meats jumped 45% compared with the same month a year earlier, while eggs rose 31%.

July's annual inflation rate was the highest since February 1997, and was up from June's rate of 4.4%.

The latest inflation figure is likely to mean more Chinese interest rate rises. Rates have already risen three times in the past six months.

Free vaccinations

The increase in the price of food is politically sensitive for the Chinese government, as it hits the poorest levels of society the hardest.

Beijing has already promised to hand pig farmers free vaccinations for their animals after a recent spate of disease outbreaks reduced the supplies of pork reaching the marketplace, leading to upward price pressure.

Chinese authorities have also ordered investigations into whether farmers or food companies are colluding to push up prices.

Chinese inflation is also being fuelled by the country's economic boom that saw the economy expand at a breakneck 11.9% from a year earlier in the April-to-June quarter.

However, the main Chinese statistics bureau stressed that the price of clothing and other non-food items was up by only 0.9% in July from a year earlier.




SEE ALSO
China rates rise to cool economy
20 Jul 07 |  Business
Chinese economy refuses to cool
19 Jul 07 |  Business
Inflation worry hits China shares
25 Jun 07 |  Business
China calls for currency fairness
20 Jun 07 |  Business
China factory output accelerates
14 Jun 07 |  Business
Volatile Chinese shares rebound
05 Jun 07 |  Business

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



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

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific