China’s January inflation at 4.9 per cent

China recorded an inflation of 4.9 per cent in January, indicating a general rise in prices measured against a standard level of purchasing power.

Food prices soared 10.3 per cent in January on an annual basis, and the prices of grain saw an increase of 15.1 per cent. Fruit prices increased by 34.8 per cent and the price of vegetables rose 2 per cent.

Inflation touched a peak 27.70 per cent in October 1994, while the lowest was minus 2.20 per cent recorded in March 1999.

''The central government has taken a slew of steps to stabilise prices. We will put it higher up on our agenda,'' Chinese premier Wen Jiabao said in Beijing on Saturday, adding that tackling inflation is Beijing's top economic priority this year.

During the opening meeting of the Fourth Session of the 11th National People's Congress at the Great Hall of the People in Beijing, Wen said, recently prices have risen fairly quickly and inflation expectations have increased.

The People's Bank of China, China's central bank, has increased reserve rates for banks eight times in the past 12 months and hiked interest rates three times since October in an attempt to reduce the amount of liquidity in the economy.