Source: CCTV.com

02-19-2008 10:59

The latest figures show January's consumer price index rising 7.1 percent from a year earlier hitting what is in effect an 11 year high.

The latest figures show January's consumer price index rising 7.1 percent from a year earlier hitting what is in effect an 11 year high. (Photo: xinhuanet.com)

The more-than-seven-percent jump has outdone the previous high of 6.9 percent reported in November last year. Soaring food and fuel prices caused by recent severe winter weather in the central, eastern and southern provinces are believed to be the main causes for this spike.

Another factor is the vigorous spending that often takes place just ahead of the Chinese Lunar new year. In any case, whatever the reasons, this new record high in inflation puts a damper on any hope of a loosening in monetary policies in the near future.

Editor:Xiong Qu