Rising fuel prices drive worries over living costs, inflation_Macro-Economy--China Economic Net
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Rising fuel prices drive worries over living costs, inflation
Last Updated(Beijing Time):2012-03-20 22:19

China's most recent fuel price hike has triggered a fresh wave of inflation concerns among a cost-sensitive public that has seen soaring prices nip away at their incomes and drive up living costs.

To reflect price changes on the international crude oil market, China's top economic planner, the National Development and Reform Commission (NDRC), announced Monday evening that it would increase gasoline and diesel prices by 600 yuan (95 U.S. dollars) per tonne from Tuesday.

The news immediately became the focus of heated discussion on Sina Weibo, China's most popular Twitter-like microblogging service, as netizens gathered to assess the hike's impact on living costs.

"Oil prices rise again. Now I can afford to buy a car, but can't afford to drive one," read a Weibo post by "Ma JieMagic."

Many others voiced frustrations over wage increases not keeping pace with rising prices.

"How I hope our wage growth will keep pace with the oil price rises," read a response posted by "Xiaoyun."

The topic garnered nearly 28 million posts on Weibo by Tuesday afternoon, underscoring growing fears that the rise will kick off a new round of inflation.

These worries came as the price of scallion, a common food on China's dinner tables, has surged more than 50 percent year-on-year, despite the fact that inflation in the country has just started to ease.

Source:Xinhua 
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