China succumbs to inflation rise

The Chinese government may rise the target rate of inflation in spite of saying that prices are under control, it was reported yesterday. Inflation was recorded at 4.4 per cent in October, dragged upwards by escalating food prices, which rose by 10.1 per cent.
But now the government may have to increase its target rate of inflation to four per cent for 2011. China’s central bank hiked interest rates in October for the first time in nearly three years.