China's inflation worries

"High prices for food, fuel and other goods are troubling Despite a slight dip in China's year-on-year consumer price inflation rate to 8.3% in March, from 8.7% in February, inflation remains at the top of the government's short-term policy concerns. According to a regular survey by the People's Bank of China (PBC, the central bank), a new high of 49% of respondents complained that prices were too high in the first quarter of 2008. These sentiments were echoed in a study by a market research firm, ACNielsen, which showed that consumers were cutting back on discretionary spending.Worrying trends in underlying inflation have emerged, with price rises triggering increases in minimum monthly wage rates and welfare benefits. In Shanghai, for example, the minimum monthly wage rose on April 1st to Rmb960 (US$137) from Rmb840, and unemployment insurance rose to Rmb550 (from Rmb410). Allowances for poor rural households within Shanghai's jurisdiction have risen to Rmb3,200 a year. ..." (2008-4-25)

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