11/17/2007, 00.00
CHINA
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Inflation hits 6.5%; Chinese fear for food prices

Its the highest rate in over 11 years. Three people are killed in a stampede to buy cheap cooking oil. The government fears social unrest and promises to keep prices low.

Beijing (AsiaNews/Agencies) – The national statistics office has issued data on inflation in October 2007: in just one year inflation has risen 6.5% putting many low income families at risk as food prices continue to soar.

In September inflation reached 6.2%.  In October it reached its highest rate since December 1996 when it topped 7%.

In order to put a halt to the situation, which risks rocking Chinese society, economists are waiting for the People’s Bank of China to raise interest rates, to control bank lending.

The population’s salary has remained stationary while food prices have soared.  In the space of one year food prices have risen by 17.6%; pork met over 70%; vegetables by 30% and cooking oil by 34%.

The increase in prices is creating serious concern for the future of families.  Last week in Chongqing, a supermarket belonging to the Carrefour chain cut the cost of cooking oil.  People queued for hours to avail of the offer and in the ensuing stampede 3 people were killed.

The government fears that the hike in prices could generate fresh social unrest and is seeking to address concerns.  Days ago premier Wen Jiabao met with a number of poor families in Beijing, consoling them over the high food prices.  According the Wen the problem is being caused by the increase in global cost of oil and grain.  The premier also promised that the government will do all in its power to keep prices stable.

 

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