Thursday, February 21, 2008

China inflation hits 11-year high


Soaring food prices were largely blamed for pushing consumer inflation up to 7.1% last month, from 6.5% in December.
Inflation in China continues to rise despite higher interest rates and other measures by Beijing to keep the economy from overheating.
The worst winter for decades hit food supplies, sending food costs up 18%.
Massive snowfalls wrecked crops and killed millions of livestock.
But analysts cautioned that the severe weather was not the only factor behind rising food costs, and warned that prices could still increase further.


Chinese inflation hit and 11 year high in January of 2008. Alot of this was caused by the major cold weather problems that they have been experiencing. The last all time high was in 1996 at 7.1%. The inflation rate is now 7.4%.

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