Increasing pork prices lift inflation in China
Chinese inflation rose to its highest level in more
than two years in May, mainly caused by heavily rising prices for pork and other
food, government figures reveal.
The government is worried that the country's economy, growing at an 11% pace
in 2007, could accelerate politically dangerous inflation. The official
inflation target is 3%.
The leaders are
especially concerned about soaring prices for pork. Pork prices have risen by
more than 40% over the past year, partly by a pork shortage caused by the spread
Last month, the Chinese prime minister Wen Jiabao appeared
on television to assure the public the government is tackling the pork
Many farmers have stopped raising pigs for fear they might
be stricken by the disease, authorities
Altogether, meat prices jumped 26.5%, while the
cost of eggs was up 37.1%, the National Bureau of Statistics
The inflation figures revealed that consumer prices rose by
3.4% in May. That was the highest rate since prices rose 3.9 percent in February
Food prices moved up 8.3% from a year ago, up from April's
7.1%. This rise is sensitive because it would be felt most strongly in the poor
countryside, where hundreds of millions of people have missed out on China's 20
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