15 Jun 2011

Inflation rising in China

7:56 am on 15 June 2011

Inflation in China is at its highest level in 34 months.

Consumer prices in China rose by 5.5% in May, compared with the same month last year, according to the National Bureau of Statistics. Food prices surged by 11.7%.

The BBC reports the rising cost of food and commodities have pushed up the cost of living. Analysts warn that prices are likely to rise even further.

China has set a target of keeping the inflation rate at 4% for the year.

The central bank has raised interest rates four times since October last year, in an effort to curb lending and rein in rising prices.