The official figures said that since August 2006, the Beijing market rising oil price shocks. Entered in November, the prices of rice, flour, vegetables and non-staple food have risen in varying degrees. The report said that it is international soybean market prices upward that lead edible oil prices rising. However, rice and flour's prices rise too, 25 kilograms of flour loaded strong increase of 12%, 500 grams of rice rose by 6 cents. As we know,in Shanghai, Guangzhou and Shenzhen, all prices of necessities such as grain and oil rose once, and continued for more than a month, flour and oil had an increase of 10% and 20%, respectively.
Entered in 2007, the rate of inflation continued to climb, CPI for the first half year is 3.2% (in June inflation index to 4.4%), food rose 7.6%, eggs rose 27.9%, meat 20.7% for food, industrial products prices (PPI) rose 2.8%. raw materials price index rose 3.8%.
Chief daily necessities’s prices rising, the people must spend more to maintain their daily lives. Daily necessities hike further intensified, people's purchasing power declines further, the domestic market reduces further, production capacity excesses further, sales difficulties further. Spiral of rising prices and the overall price hikes lead to economic crisis,which is a increasing danger.
Today, China's problem lies in the CPC privileged group’s spontaneous disintegration. Its members will no longer take into account the overall interests of the group, use its power and resources as possible in their own financial gain. For example, LUNENG Power Group worth 60 billion yuan is even bought at some 3 billion. Its members use all opportunities, including conniving with international floating capital, make a profit in housing prices bidden up so high like fishing in troubled waters!