China’s upward inflationary trend hit a new high in November, with the consumer price index registering a record year-on-year increase of 6.9 per cent.
The figures were announced two days after China’s tenth 2007 raising of
its capital reserve ratio for domestic banks, which forms a key part of
attempts to reduce liquidity and control inflationary pressures.
The new inflation figure surpassed October's 6.5 per cent increase, which was the largest monthly rise since early 1997.
According to the National Bureau of Statistics, China’s CPI grew 6.6
per cent in urban areas and 7.6 per cent in rural areas in November.
Food costs, which account for a third of the CPI basket, were again
blamed as the key driver of inflation in the economy. Prices of food
surged 18.2 per cent year on year in November.
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