The lives of three people were claimed last November because of a scramble for cooking oil. Hundreds of people had queued from the early hours of the morning to snatch up a four-litre bottle of oil, which had been reduced by about 1.5 US dollars, eyewitnesses reported.

One old man said the supermarket employees had simply thrown the bottle into the crowd. Ten minutes later, several elderly customers were lying on the ground. Three were dead and 31 were seriously injured.

Rising consumer prices are China's greatest concern, a poll recently conducted by the Beijing "Youth Daily" newspaper found. The Chinese want consumer prices to go down more than they want measures to protect the environment, or corruption to be fought.

Pork and oil on the rise

Even on special offer, a litre of cooking oil costs about 1.5 US dollars in China. Discount stores in the west sell oil for much less. The average Chinese employee earns about 1,500 dollars a year.

However, the poorer ones have to fight for survival -- sometimes literally.

Another example: the price of pork went up by 56 percent last October despite the Chinese government’s repeated attempts to pacify the meat market. The figure raised the alarm at Beijing’s highest executive level.

Controlling prices

The ministry of trade is now anxious to bring a halt to the rising prices. A spokesman for the ministry of trade Wang Xingpei explained why the prices rose in the first place:

"The cost of rearing pigs went up: fodder, technology, transport, etc. Lack of supply and increasing demand for pork caused the price to rise. And, of course, the market played a big role, too."

The rise in food prices has put the entire Chinese economy under pressure. Inflation is increasing. The official figures show the inflation rate reached 6.9 percent last November -- reaching its highest level in 11 years.

Consumer price index

Professor Frank M. Song from the University of Hong Kong, who is the chairman of China’s Financial Research Institute, said the consumer price index for basic staple food prices was significant but that high oil prices hadn't yet made a difference.

"It’s got much more to do with people’s wallets," he explained. "In my opinion, inflation on mainland China is even worse than the published figures say. The CPI hasn't even begun to reflect the rising costs of production."

Temporary respite

Meanwhile, Beijing has temporarily frozen the price of staple foods. The Chinese State Council has decreed that manufacturers have to get a special permit from the government if they want to increase their prices.

This week, the government ordered all banks to increase their financial reserves to slow down economic growth.

Temporarily, then, there is some respite for average consumers but observers wonder if it will last.