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Entries in Inflation (1)

Tuesday
Nov302010

China Reels from Inflation, Soaring Cost of Food

Photo Courtesy -- Getty Images(BEIJING, China) – As inflation skyrockets, Chinese officials are trying to deal with the soaring cost of food, reports China Daily.

China has seen a 10.1-percent rise in food prices from October 2009, with an 18-percent rise in the cost of vegetables over the same period. In some provinces, the cost of vegetables has soared as much as 30 percent.
 
The increased prices are forcing even the world’s largest companies to raise prices. McDonalds has said they will add up to the equivalent of 15 cents to menu items due to the “rising cost of raw materials.”

The State Council has announced a series of measures to keep costs down. Among them are $3.3 million that Beijing is set to spend on subsidies to low income families.

The measures, however, could have little influence according to economists who believe that China must deal with the fundamental issues of artificially low interest rates and low currency.

Copyright 2010 ABC News Radio







ABC News Radio