Inflation was

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10 March 2011 last updated at 16: 14 GMT by Chris Hogg-BBC News, Shanghai food prices in China were up 10.3% drives a car for a life in the southern Chinese province of Guangdong in January compared to a year ahead of Liu Shui hua.

He used to rent from 600 Yuan ($91; £ 56) per day. Now, the price is 400 Yuan.

"Prices of everything are high, so that people want to spend less, or less often use the car service." It says the only way I can keep up, "he."

He feels pressed. He is from Henan province in central China, and he, Guangdong is very expensive.

The Government increases the price for the type of gasoline used by 30 fen (5 US cents) a few months before.

It is now about seven Yuan per litre.

"it the car tax have canceled, because they always are so much more tax from the gasoline," says Liu Shui hua.

"But it make much difference, the cost of living is high in the sky."

Control of prices

China's Prime Minister Wen Jiabao said the annual meeting of the national of people's Congress, the country's Parliament, this week, that price stability top priority in the year 2011.

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little control has the cost of raw materials from abroad, raw materials or gasoline "

end quote Lee Yong Ji University still all week the stock markets in China were lively, in part, because the Prime Minister" BetonteKontinuität stability, Flexibility and efficiency "instead signaling a tightening of monetary policy."

Chinese officials as people point out that under the country's price laws, that it the authority to intervene wherever and whenever they try that inflation control to need.

But Shanghai-based economist Andy Rothman who argued CLSA capital that they speak the speech, but not actually the walk walk.

"Back on in 2008, as food prices rose twice as fast as they it the price of cooking are limited, oil and the price of milk for three months now," he says.

"Just now as far as I am aware that the only food item is controlled the price of oil - cooking and the measure was only for three months in."

Food prices helped drive up inflation in November to 5.1% - a 28-month high, but one, which was above all to a period of bad weather.

The weather cleared up, the growing season for lots of vegetables was not so long transport problems have been removed and prices have started to stabilize.

"It was nothing to do with price controls," says Mr. Rothman.

"The only place where the Government controlled the prices, gasoline and the bills for utilities such as electricity and gas are the consumer of pays."

"The Government has to pick up these bills, was made possible, so that is a good indication that there are not about the inflation panic."

Raise of income

Beijing says it wants the people more, to help ease to make the burden of rising prices.

IHS global insight analyst Xiangfang ren points out of the country's new "five year plan" sets a target of 7% for urban and rural household income growth, pretty much the same as the target for economic growth (GDP).

Under the previous five year plan, the income growth target was much more modest than the GDP target.

"Some 29 Chinese provinces announced a similar aim of household income growth, which either about the same or faster than to achieve GDP growth in the next five years," explains Mr. Rothman.

"Despite only three provinces manage to do that under the final plan."

We are not for several years, but know that it is reachable.

Change the policy

Inflation is the result of the high demand for goods such as food, as caused by rising costs.

Lee Yong, Professor at the school of Economics and finance at Ji University in Shanghai, points out there are limits to what can China do to control the latter.

He says "China has little control over the cost of raw materials from abroad, such as aw materials or gasoline".

What can change it, is the industrial structure calls the Professor "a long-term problem", which take time to resolve claims.

Many critics of China's industrial policy point to an undue reliance on investment in infrastructure, maintain economic growth.

This week the Government announced, build or renovate 10 million units of affordable housing this year and again in the year 2012, part of a 36 - million unit programme over five years.

She hope it will ease pressure on prices, but by increasing demand for raw materials and work it could inflation to fuel pump.