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Inflation rises to 8.5 per cent in April in China
BEIJING- Inflation in China rose to 8.5 per cent in April, its highest rate in 11 years, as food prices surged, the government said Monday.
The hike in consumer prices from the same month a year ago was higher than March's 8.3-per-cent rate, the National Bureau of Statistics said.
April's statistics showed that food prices jumped 22.1 per cent with meat up 47.9 per cent, pork rising 68.3 per cent and cooking oil up 46.6 per cent, it said.
Price hikes were also seen by manufacturers as the producer price index rose 8.1 per cent, primarily because of the higher costs of energy and raw materials.
Experts estimated that those higher prices being absorbed by producers would show up in the cost for consumers in about six months.
They also said they doubted that China's government could hit the target its set in March of less than 4.8-per-cent inflation for the year.
Combating inflation amid China's booming economy has been a key challenge for the government. The central bank raised interest rates six times last year and the reserve ratio required for banks 13 times since last year to clamp down on inflation and try to prevent the economy from overheating.
China's economy grew 10.6 per cent in the first quarter, down from 11.9-per-cent growth recorded in all of 2007, as exports fell and snow closed plants.
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