March 12, 2008

China's CPI rises 8.7 percent in February

Rising food prices in China sent February's consumer price index (CPI) rising by a higher-than-expected 8.7 percent compared to a month ago, according to official statistics. The country's inflation is now at a 12-year high. In the urban and rural areas, their respective CPI was up by 8.5 percent and 9.2 percent.

Food prices surged 23.3 percent, with pork and vegetable prices rising by 63.4 percent and 46 percent respectively. Prices of edible oil were also up by a bigger-than-expected 41 percent.

At the recently concluded National People's Congress, the Chinese government had pledged to keep inflation within 4.8 percent for 2008. Should food prices and commodities continue to rise, it may be difficult for the government to achieve their target.

RMB1=US$0.1407 (Mar 12)