It was a big day yesterday on announcing data and measures in handling China's soaring food prices. CPI for the first quarter amounts to 8 percent. The increase in March alone, compared to last year, has gone up by 8.3 per cent. Inflation is running at a high level and the peoples' purses are tightening.
On the other hand, measures are taken in containing the inflation. Hours after the CPI data announcement, the Central Bank raised the bank's reserve requirement ratio for the third time this year to 16%. In an effort to curb food prices, National Reform and Development Commission just turned down a request to raise cooking oil price and made a promise of subsidy.
To read more on China's inflation and how common people are reacting to it, please read my story on China's Rising Food Prices Cause Pain on Time.