Chinese inflation rate has increased 3.4 percent, more than official anticipation of 3 percent, adds the worry to the Chinese authority as scorching economy is growing at 11 percent pace this year, arise the fear of politically dangerous inflation.
The National Bureau of Statistics (NBS) says that the mounting Pork and other food prices stunned the policy makers as inflation increased to its highest rate since prices rose 3.9 percent in February 2005.
NBS unleashes that food prices soared by 8.3 percent from a month before 7.1 percent, whereas meat prices increased 26.5 percent and egg’s prices soared record up 37.1 percent. Prices of meat in the market have increased more than 40 percent over the past one year, partly by a pork shortage.
To combat with the price rise problem, china has increased bank rates twice since mid-March to cool the economy and with the latest upsurge in the inflation also strengthen the further rate rise to shrink the credit pool.
Image: cominganarchy
Via: wtop
