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The following article was published in our article directory on February 16, 2011.
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Article Category: Business
Author Name: xia zihui
Ordinary Chinese consumers are coming up with different ways and ideas to cope with rising food and household prices, hoping to improve their standard of living while prices continue to rise.
The consumer price index (CPI) for January was 4.9 percent, about 0.3 percent higher than in December, but a little lower than what many economists predicted.
Facing rising prices, consumers have developed ways to increase their income and reduce spending.
For retirees with savings in banks, the most common add to their funds is to lock in their deposits at a higher interest rate.
"I have a 100,000 yuan ($15,176) deposit in the bank. After the central bank announced the interest rate hike last Tuesday, I rushed to the bank to reinvest my money at the new rate," said Li Guo, a 78-year-old retiree in Shanghai.
Li said he waited for two hours for his number to be called, because more than 60 elderly people were waiting in line to do the same thing.
Younger people either have their money managed by financial service institutes or increase their investments, purchasing property for example, to offset the effects of rising inflation.
"I do not worry about my money depreciating, because I put it all into properties," said Wang Tao, who bought an apartment in Anhui province two years ago.
Meanwhile, people are economizing to make the most of their money.
Li Ya, an art student from Beijing University of Technology, said she used to eat apples, but they have become expensive, so she now buys bananas, which cost about half as much.
"I don't pay much attention to CPI figures, but I've noticed food prices shooting up in the past few years," Li said.
Although the central government has spared no efforts to contain inflation, many consumers find it difficult to see the results.
"I have no idea about the CPI or any figures in China. But I don't think prices are being controlled very well. There are too many rich people in China who can afford expensive things, such as cars or property," said Bi Jinying, a 76-year-old retiree in Beijing with monthly income of about 2,000 yuan.
"There is no way for prices to go down," Bi said.
"What I'm most concerned about now is that no-one in my family gets sick. Otherwise, our costs will be much higher," she said.
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