China's inflation rate reached its highest level in nearly three years in May,
official government figures have revealed. The increase comes despite persistent efforts to tame food and property costs.
The consumer price index rose 5.5 per cent year-on-year in May - far above Beijing's annual target of four per cent. It was the highest rate since July 2008, when the index rose 6.3 per cent.
Meanwhile, the National Bureau of Statistics said that China's annual real estate investment growth
also climbed to 34.6 per cent in the first five months of 2011, from a rise of 34.3 per cent in the first four months.
That means property investment in the country quickened in May, driven by accelerating construction of affordable housing.
Analysts said Beijing's increasing efforts to build more cheap housing for its poor population would help hold up real estate investment throughout 2011, although some developers slowed their pace of expansion amid slack sales.
- Friday 17 June 2011