Inflation is rising rapidly in China

HONG KONG — For K. K. Lam, a 37-year-old accountant in Guangzhou, inflation means higher prices for pork and for vegetables like bok choy.

For Allen Dong, the sales manager for a home appliance manufacturer 700 miles to the northeast in Ningbo, inflation means trying to persuade retailers to pay more for dehumidifiers so his company can cover rising costs for wages and raw materials.

From street markets to corporate offices, consumers and executives alike in China are trying to cope with rising prices. The National Bureau of Statistics announced on Saturday that consumer prices in China were 3.5 percent higher compared with a year earlier, the largest increase in nearly two years.

To make matters worse, inflation over the short term also seems to be accelerating. A seasonally adjusted comparison of August prices to July prices showed that inflation was running at an annualized pace closer to 4.8 percent.

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