China’s inflation jumps to 6-month high
Friday, January 11, 2013
BEIJING (AP) — China’s inflation jumped to a six-month high in December, driven by a surge in food costs due to unusually cold winter weather.
Data on Friday showed consumer prices rose 2.5 percent over a year earlier, up from November’s 2 percent.
The increase was driven largely by a 14.8 percent rise in prices for vegetables after the country’s coldest winter in seven years led to smaller harvests.
The price rises come as China’s economy is struggling to emerge from its deepest economic downturn since the 2008 global crisis.
The December inflation rate is well below the government’s 4 percent inflation target for the year but more price increases could limit the government’s options for responding to any new slowdown in growth.