Beijing wary as food prices jump

The number one topic in Beijing’s markets these days is not property but runaway food prices. For most Chinese citizens food cost makes up a big part of their overall expenses. And many households food takes as much as 40% of budgets and a 10% jump on overall food prices has cut deeply. And large cities, like Beijing prices for some basics like rice, cooking oil and vegetables have doubled in the last few months, meantime, residents point out salaries have stayed stagnant.

There is nothing here that has not increased in price; carrots are up to 5.3 Yuan they use to be one Yuan for five hundred grams.
How do we bear it, we can’t bear it, our salaries are too low, it is not bearable.

Consumer prices rose to a 25-month high in October, led mainly by the food component. Some residents like Ren Liangquan have even thought relief in neighboring Hong Kong.

It is definitely a bit cheaper, a lot of people think it is cheaper than the mainland, also there are more types of brands, and that is an advantage.

China is threatening prices controls but so far still short of lining actual measures, it is partly because Chinese famers benefit from the higher prices, independent economist, N, says Beijing risks unrest of prices are not contained.
Normally social crisis in China tends to start with inflation, because of the low income Chinese are savers and inflation tense to erode the value of their bank deposits that cause social panic. What I would see here it is a show up that people are holding household goods and that is a sign of social crisis.
At current 4.4% inflation is still well below early 2008 peaks but Beijing was surprise by the latest data and some observers say officials are moving to show its awareness of situation and ready to act if necessary.