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China - Rising Food Inflation Threatens Regime's Control of Social Stability

sharon sanders

sharon sanders

Editor-in-Chief & President
Chinese learn to live with rising food costs
By Mitch Moxley

BEIJING -

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Premier Wen Jiabao during a televised [FONT=inherit ! important][FONT=inherit ! important]online[/FONT][/FONT] question-and-answer session at the weekend said he recognized the impact on people of rising food prices and risk of unrest. "Rapid inflation affects people's livelihoods and may affect social stability," he said. "I know the impact that prices can cause a country and am deeply aware of its extreme importance."

Soaring inflation has been the dominant news story coming out of China in recent months. In January, consumer prices in China climbed 4.9% from a year earlier, while food prices soared 10.3% from the month before, according to [FONT=inherit ! important][FONT=inherit ! important]government[/FONT][/FONT] figures.

The consumer price figure was lower than expected, but still cause for concern. Critics claim the statistics bureau recalculated the index to give less weight to food costs, meaning inflation might have been higher than reported.

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In many areas of China, families spend up to half their income on food.

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Beijing has tried to calm public concerns by paying subsidies to poor families, keeping prices low at university cafeterias and ordering local governments to ensure vegetable markets are well stocked.

more..

http://www.atimes.com/atimes/China_Business/MC01Cb01.html
 
Re: China - Rising Food Inflation Threatens Regime's Control of Social Stability

see related thread about long-term water shortage: http://www.flutrackers.com/forum/showthread.php?t=162771

If dought conditions persist there will be an immediate severe shortage of wheat for domestic consumption and export.

An important point of the drought article is that: they're pumping aquifers dry and major population centers are not located near major water supplies. They're in the process of constructing a very expensive pipe to relocate the water.

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