ECONOMIC DATA:FOR WEEKS, internet commentators on Weibo, the Chinese version of the banned Facebook social network, have been complaining about the shocking increase in the price of pork, China's staple meat.

Economic data yesterday confirmed the complaints of the ordinary people, when the National Bureau of Statistics released price figures for July which showed that inflation in China had surged to a three-year high, driven by a sharp rise in the price of food.

The price of pork rose 56.7 per cent in July over a year earlier, the statistics bureau reported. Eggs rose 19.7 per cent and fresh vegetables were up 7.6 per cent.

Chinese inflation is driven by consumer demand, which is rising faster than food supply, while there is ample cash in the economy since the bank lending boom that helped China fend off the 2008 global crisis.

The data has fuelled fears that rising prices could cause political unrest. The continuing popularity of the ruling Communist Party is based on strong economic growth, but higher prices can eat away at the benefits of a rising economy.

While the rest of the world is struggling to grow, China’s economy grew 9.5 per cent in the quarter to the end of June.

The consumer price index rose 6.5 per cent last month compared to a year earlier, the statistics agency said, the highest level since June 2008 when it reached 7.1 per cent. The inflation figures have also led to anxieties that economic growth in the world’s second-biggest economy might slow down at a time when the rest of the world needs it most.

The Beijing government has already conceded that its target of 4 per cent inflation this year is not going to happen. China has wrestled with inflation in recent months, even as it has tried to squeeze the amount of money banks can lend and by raising interest rates five times since October.

The main culprit was a 14.8 per cent rise in food costs, up from June’s 14.4 per cent. This is likely to hurt low earners most, as one-third of their incomes typically goes on food.

The inflation rise comes as manufacturing and other economic indicators showed a slowdown last month, after repeated interest rate hikes and other cooling measures designed to take some of the heat out of the economy.

The World Bank raised its forecast of China’s economic growth in April from 8.5 per cent to 9.3 per cent.