In China consumer price index – key index of inflation process – increased by 8.7% in February of 2008, PRC State Statistical Bureau said.
This the highest rate for the last 11 years, China News reports.
The main factors that led to price increase are the consequences of this year’s abnormally snowy and cold winter. The unpredictable weather caused price hikes for vegetables, meat and other food products. Analysts foresee that central authorities will undertake new measures aimed at toughening the monetary policy. The increase of interest rates on deposits and credits are expected to take place already this week.
At the ongoing session of the People’s National Congress in Beijing the government set the task to curb the inflation rate within 4.8%.