Inflation stays high
14 September 2004
China's consumer price index (CPI) saw a 5.4% increase in August � the same as for July, adding further pressure on the government to raise interest rates, state media reported. Government economists said higher food and utility prices kept inflation at a relatively high level and there were no new factors to account for rising prices. According to the central government's statistics bureau, prices for water, fuel and electricity rose 9.6% year-on-year, while prices for grain and eggs rose by more than 30%. Last week the governor of the People's Bank of China said the central bank would wait for the release of August data before deciding what, if any, measures were needed to take some of the heat out of the economy. Interest rates have not risen in nine years.