Runaway Inflation Takes a Toll on Working Chinese


by NTDTelevision

  • About
  • Export
  • Add to
For more news visit ☛ http://english.ntdtv.com
Follow us on Twitter ☛ http://twitter.com/NTDTelevision
Add us on Facebook ☛ http://facebook.com/NTDTelevision

For the average Chinese citizen life is getting harder to afford. With inflation at record levels and showing no sign of slowing down, people are struggling to buy basic necessities. Now the Chinese regime has made controlling inflation a priority, under the threat of social unrest. Here's more.

China's economy is apparently still booming. But increasing just as fast is China's inflation. It jumped to a 32-month high in March. And that's a big problem for the average Chinese.

The costs of food and basic necessities have gone up sharply, while wages have increased along a much shallower curve.

[Zhang Kelling, Construction Worker]:
"Our salaries actually haven't risen much. We make very little. Before, about three years ago, we made 80 yuan ($12 U.S. dollars) per day, but now we make just over 100 yuan ($15 U.S. dollars). There's no comparison between our wages and the prices. So when the prices rise, us migrant workers really can't handle it."

In the first three months of this year, food costs have jumped by 11.7 percent.


[Du Zongjun, Grocer]:
"There is definitely an impact. People are not buying as much as they did before. People are buying less, so I'm not doing much business. The main reason is because the prices are too high, prices rise but the wages stay the same, so they just buy less. Before people would buy one or two cucumbers, but now they just buy one."

High prices plus stagnant wages equals unhappy people. And that's not lost on the ruling CCP regime, wary of social unrest.

The communist regime has raised interest rates twice and required banks to hold triple the amount of cash against their loans in a desperate attempt to apply the brakes.

Attempts at price control—a dicey business in China's notoriously unruly and under-regulated marketplace—have yet to be effective.