BEIJING, Feb. 15 (UPI) -- Inflation rose 4.9 percent in January in China, largely due to higher food prices, the government said, as severe drought grips China's wheat-growing areas.
The January rise in the consumer price index, the main gauge of gauge of inflation, came as food prices jumped 10.3 percent, the government said. Food prices account for about a third of the items used to calculate the consumer price index.
The January inflation numbers were higher than the government's 4 percent target and December's 4.6 percent, but below November's 5.1 percent, which was the highest in 28 months year-on-year, the National Bureau of Statistics said.
The China Daily reported the January increase was also below market estimate of 5 percent.
China is battling inflation at a time when vast areas of its wheat-growing regions have been hit by a prolonged winter drought that is pushing food prices higher.
China's central bank, in its money tightening policies, raised interest rates this month for the third time in recent months. The government has raised the required reserve ratios for banks seven times since January 2010 and ordered banks to tighten credit to contain excessive liquidity.
