In October Chinese inflation soared to 4.4 per cent, its highest level in over two years. The authorities are concerned: high inflation suggests that the government’s stimulus measures are causing the economy to overheat.

This week’s beyondbrics chart (after the break) shows that Chinese inflation is being primarily driven by rising food prices, which have shot up 10 per cent since October 2009. The price of non-food items has risen by only 1.6 per cent in the same period. Reining in inflation may not be as straightforward as hiking interest rates.

Due to rising global commodity prices, food inflation is higher than general inflation in most countries. The reason China has been particularly affected is that food represents a larger component of its overall inflation index than, for example, in the US and UK. Chinese citizens spend a relatively high proportion of their income on food.