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    China's Inflation Hits 37-Month High


    by NTDTelevision

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    There seems to be no relief from China's rising prices, particularly when it comes to food. Data from July shows that inflation is now running at a 37-month high--and citizens are feeling the pressure.

    Figures for July show that inflation in China is now running at 6.5 percent, the highest level in 37 months. The Consumer Price Index is largely being driven by rising food prices, now rising at an annual rate of 14.8 percent.

    The price of pork has gone up the most, rising 56 percent since last year. The prices of lamb, eggs, and even green vegetables are also rising.

    NTD spoke to a restaurant owner from Chongqing who's feeling the pressure.

    [Mr. Yang, Restaurant Owner]:
    "Right now I feel a lot of pressure. Every day I go to the market and 15 bucks are gone in a flash. For the average person it's very hard. Now it's getting more and more serious."

    Inflation has risen despite authorities' efforts to keep it in check. They've raised interest rates recently to cool the economy. But raising rates can cause its own problems, especially as European and U.S. demand for Chinese goods is getting weaker.

    Many analysts expect China's central bank to maintain the current interest rate and hold off on another rise.
    Ben Hedges