China’s CPI rises by 2.5% in December; food prices on rise
Beijing, China (4E) – China’s inflation rate jumped to its highest level in seven months in December as adverse weather conditions cause the country’s food prices to shoot up.
In a report released by the National Bureau of Statistics on Friday in Beijing, the country’s consumer price index (CPI) jumped 2.5 percent in December compared to the previous year. The rice in food prices brought the CPI higher compared to November’s 2 per cent and 1.7 per cent in October, which is a 33-month low.
Last month, food prices gained by 4.2 per cent compared to the same month in 2011, which is the highest increase recorded since May. The bureau also said that vegetable prices, which constituted more than half of the month-on-month gain in the CPI, rose by 14.8 per cent from the previous year.
Aquatic products, meanwhile, increased in price by 6.1 percent from a year earlier, according to the latest data.
The country has been hit by its coldest winter in 28 years, and as a result Chinese consumers have to deal with higher vegetable and pork prices, which are likely to remain at high levels until the Spring Festival, China’s New Year holidays.
Other sectors of the economy is also beginning to feel inflationary pressures. Prices of services jumped by 2.5 percent last month compared to the previous year, the fastest rise since October 2011. Daily-use items also saw its factory-gate prices rise at its fastest pace since June.