China's inflation rises as food costs surge

BEIJING – A jump in food prices pushed China's inflation higher in January, adding to pressure on Beijing to control surging living costs.

Consumer prices rose 4.9 percent, driven by a 10.3 percent rise in food costs, government data showed. That was a rebound from December's 4.6 percent rate and close to November's 28-month high of 5.1 percent.

Beijing has hiked interest rates repeatedly to cool rapid economic growth and inflation pressures. But analysts say inflation is being driven by tight food supplies at a time of soaring demand — a problem the government cannot quickly fix.

Private sector analysts expect more interest rate increases this year but say such moves alone cannot bring down inflation. Many expect inflation to go even higher before peaking later this year.

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China National Bureau of Statistics (in Chinese): http://www.stats.gov.cn