Chinese consumers are fretting about rising living expenses as green onion prices skyrocketed to a record high and fuel prices have jumped twice in three months.

Wholesale vegetable prices rose 20 percent year-on-year to 2.9 yuan (0.46 U.S. dollars) per kilo in March, according to data from Xinfadi, the largest wholesale market in Beijing.

Following garlic and ginger price hikes last year, the price of green onions, a staple ingredient in Chinese cuisine, has been causing a stir in many parts of the country as two pieces of the stalky vegetable cost 10 yuan, five times more than a year earlier.

Budget-conscious shoppers have scrambled to find alternatives to green onions, while restaurant owners have chosen to pass the higher prices onto consumers.

"A dish of scrambled eggs with green onions costs two yuan more at an eatery near my home," said Wang Yao, a 30-year-old engineer in Jinan, capital city of east China's Shandong province.

As for the cause of this wave of vegetable price surges, Xu Lianzhong, director of the Analysis and Prediction Office of the National Development and Reform Commission, pointed to cold weather.

"Snowy weather disrupted vegetable supplies, pushing prices higher. With the weather getting warmer, prices will consequently become palatable," Xu said.

Despite a steady fall in inflation in the past few months, recent price appreciation has alarmed Chinese authorities, who are targeting a 4-percent ceiling for this year's inflation.

The State Council, or China's Cabinet, stressed this week that the government should encourage production and ensure supplies to prevent a rebound in consumer prices, especially in the food sector.

China's consumer price index (CPI) dropped to 3.2 percent in February, the lowest it has been since June 2010. Food inflation was 6.2 percent last month, well below July's 14.8-percent peak.

To avoid sudden increases in food prices, the country has to solve the long-standing boom-bust problem in agriculture.

In the case of green onion, farmers grew fewer crops after green onion prices slumped last year, leading to a supply-demand imbalance this spring.

"The government should build a nationwide platform to allow farmers to share timely accurate market information, so farmers can decide when and what to grow and the market can avoid significant changes in supply and demand," said Zuo Xiaolei, chief economist at China Galaxy Securities.

Zhao Ping, deputy director of the Consumer Research Department of the Ministry of Commerce, suggested lowering logistics costs and reducing unnecessary circulation to stabilize consumer prices.

A central bank survey released last week showed that 62.9 percent of respondents said current prices are unacceptable.

Meanwhile, a rebound in property turnover strengthened inflationary expectations.

Official data showed that the trading volume of new homes rose 44.3 percent month-on-month in February in first-tier cities, including Beijing and Shanghai, while sold floor space increased 42.5 percent from one month earlier.

Analysts said a possible decline in this year's grain output, rising global energy and resources prices and other external factors may further complicate the country's campaign to control prices.

Although China faces a daunting battle against inflation, economists believe inflation in the country will not spiral out of control.

"We maintain our earlier forecast that consumer prices will see year-on-year declines during the first three quarters of 2012, and register a slight rebound in the last quarter," said Tang Jianwei, senior analyst at Bank of Communications.

He said he expects the country's CPI to reach between 2.7 percent and 3.3 percent in 2012, compared with a 5.4-percent increase registered last year.

"If everything goes well, the government can meet its 4-percent target this year," Tang said.