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Advertisement | China's Monthly Inflation Rises To 7.1%Severe Winter Storms, Food Shortages Drive Price Increases, Highest Inflation In A DecadeBEIJING, Feb. 18, 2008 ![]() (AP) (AP) China's inflation accelerated in January to 7.1 percent - its rate highest in more than a decade - amid snowstorms that fueled a spike in food costs, according to data reported Tuesday. The sharp rise in consumer prices was driven by an 18.2 percent increase in food costs from the same period a year ago, the National Bureau of Statistics reported on its Web site. That came despite government efforts to ease shortages of pork, grain and other goods that is blamed for a six-month-old spike in food prices that has driven inflation to decade-high rates. January's increase exceeded November's 6.9 percent rate, which was the highest in 11 years. Chinese leaders have tried to increase food supplies with steps including paying farmers to raise more pigs. But economists have raised their inflation forecasts for the first half of 2008 after freak snowstorms battered China's south, killing millions of farm animals and wrecking crops. Chinese leaders are especially worried about the political impact of rapidly rising food costs, which hit the country's poor majority hard. So far, the rise appears to be confined to food, according to the data reported Tuesday. They showed prices for non-food items up only 1.5 percent in January over the same month last year. But Chinese leaders worry that chronic high increases in food costs will spread to other parts of the economy. © MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. | Advertisement Obama In Berlin: New Walls Must FallDemocrat Urges Transatlantic Unity, Cites NATO's Defeat Of Communism In Call To Combat Terror |
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