The deadly Typhoon Usagi which left a trail of devastation through China in September added to the country’s inflation headaches as it sent the cost of fresh vegetables soaring, official figures showed today.
Inflation in China hit a seven-month high of 3.1% last month — up from 2.6% the previous month — giving Beijing less leeway to keep the world’s second-biggest economy on a steady growth path despite sliding exports. The new figures showed China’s exports dropped 0.3% in September compared to last year, short of expectations of 0.6% growth.
The inflation rise was largely driven by a 6.1% rise in food prices, as a combination of floods caused by the typhoon and droughts elsewhere in the country pushed up the cost of fresh vegetables by 18.9% on last year. Food has a huge effect because it accounts for nearly a third of the Chinese inflation basket. Overall growth slowed to 7.5% in the second quarter of this year, putting the nation on course for its slowest growth for more than 20 years.
