In order to tame inflation in China, it seems Beijing will have to do much more and that too probably at the price of dwindling growth and employment. On Monday 12 May, the Chinese National Bureau of Statistics announced that the consumer price index has escalated to 8.5 per cent in April in comparison to the same month previous year, up from 8.3 per cent in March. The key cause happens to be the soaring food prices that have risen 22.1 per cent year-on-year in April. Non-food costs, on the other hand, have upped by only 1.8 per cent and this should provide some respite given the international spike in the prices of oil and minerals.

 

The price of meat and poultry in China is up 47.9 per cent, which is 2.1 per cent more than the 45.8 per cent rise noticed in March. The costs of seafood items are up 16.1 per cent, the price of vegetables have upped 13.6 per cent whereas the costs of fresh fruit have upped 12.1 per cent. The swelling up of grain prices was in tandem with global markets, inching up 7.4 per cent in April and egg prices were up 3.6 per cent. It is the surging food prices that is the real cause of worry for the Chinese government as it has hit the poorest the hardest and therefore, has the potential to lead to unrest.