China’s Inflation Edges up, Driven by Food Costs

ABC News reports:

China’s inflation edged higher in August as the nation’s worst flooding in a decade drove an increase in food costs and industrial growth continued to quicken.

Consumer prices rose 3.5 percent in August compared with a year earlier, the National Bureau of Statistics announced Saturday. It was the highest level in 22 months and a small increase over July’s 3.3 percent.

Much of the increase was fueled by a jump in food prices, which rose by 7.5 percent because summer storms and floods ruined crops and disrupted shipping.

Overall, the country’s Consumer Price Index, increased 2.8 percent year-on-year in the first eight months of 2010, said Sheng Laiyun, the NBS spokesman. The Chinese government had set a target of trying to keep inflation within 3 percent for the year.

September 10, 2010 9:54 PM
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Categories: Economy, Society