August inflation rate could hit 10-year high
6 September 2007
The inflation rate in August could have hit a 10-year high, breaking the record set in July, the South China Morning Post
reported. July's annualized inflation came to 3.5%, the highest since
February 1997, largely thanks to an increase in food prices. The food
price rise was driven by a pork shortage;
the meat is an important part of the basket of goods counted in China's
consumer price index. National Development and Reform Commission vice
chairman Bi Jingquan said the pork shortage would likely not ease until
the second quarter of next year. China's central bank announced
announced last week that inflation for the year would exceed its
initial projection of 3%.