February inflation may have hit 8.3%

China’s consumer price index (CPI) may have hit an 11-year high of 8.3% in February, AFP reported, citing state media. In an estimate given by the Bank of China, rising food prices, compounded by traditionally high demand during the Chinese New Year holiday and this year’s crippling snowstorms were to blame for inflation. The prospect of a new high after January’s 7.1% year-on-year rise had some suggesting that Chinese policy makers could consider interest rate hikes to keep inflation in check. In a separate analysis, Bloomberg said that February’s inflation might have been 7.9%, which still represents an 11-year high. At the start of the National People’s Congress last week, Premier Wen Jiabao said inflationary pressures "are the biggest concern of the people."