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Food prices are soaring high in Beijing. People are spending more money on food, while their salaries have remained stagnant. Here's more.
The number one topic in Beijing's markets these days is not property, but runaway food prices.
For most Chinese citizens, food costs make up a big part of their overall expenses.
In many households, food takes up as much as 40 percent of spending budgets, and a 10 percent jump in overall food prices has cut deeply.
In larger cities like Beijing, prices for some basics like rice, cooking oil and vegetables have doubled in the past few months.
Meantime, residents point out, salaries have stayed stagnant.
[Ms. Zhang, Beijing Resident]:
"There is nothing here that has not increased in price. Carrots are up to 5.3 yuan, they used to be 1 yuan for 500 grams."
"How do we bear it? We can't bear it, our salaries are too low... it's not bearable."
Consumer prices rose to a 25-month high in October, led mainly by the food component.
Some residents like Ren Liangchuan, have even sought relief in neighboring Hong Kong.
[Ren Liangchuan, Beijing Resident]:
"It's definitely a bit cheaper, a lot of people think it is cheaper than the mainland. Also, there are more types of brands and that is an advantage."
China is threatening price controls, but has so far stopped short of naming actual measures.
This is partly because Chinese farmers benefit from higher prices.
Independent economist Andy Xie says Beijing risks unrest if prices are not contained.
[Andy Xie, Independent Hong Kong-based Economist]:
"Normally social crisis in China tends to start with inflation because the low income Chinese are savers and inflation tends to erode the value of their bank deposits. That causes social panic. What do I think? It's that it's showing up that people are hoarding household goods and that is a sign of social crisis."
