February 25, 2013
Chinese people are feeling the pinch from rising prices, especially in regards to food and housing, and a majority believe prices will rise this year, an ongoing poll shows.
Around 75 percent of respondents said food prices have the largest impact on their lives, while 15 percent pointed to rising home costs and rent, according to an online survey conducted by the People’s Daily Online, the official website of the flagship newspaper of the Communist Party of China.
The poll shows that 77 percent of respondents believe the consumer price index (CPI), a main gauge of inflation, will rise by a large margin this year.
China’s CPI rose 2.6 percent year on year in 2012, below the government’s target of 4 percent, with food prices rising 4.8 percent year on year, data from the National Bureau of Statistics shows.
Yi Xianrong, a researcher with the Chinese Academy of Social Sciences, said China is facing mounting inflationary pressures this year due to the country’s rising labor costs, the market-oriented reform of resource products and imported inflation.
The majority of respondents said they believe the government should take measures to counter the impact of rising prices, including enhancing supervision over pricing, reducing logistics costs and raising minimum wage levels.
In its central economic work conference held last December to set the tone for this year’s policymaking, the country said it would strive to maintain general price stability this year.