China index-links social aid

Low-income people in China will receive government help if inflation is too high and lasts too long, according to a joint statement released by five ministries.

Local governments should link social assistance for low-income residents with the Consumer Price Index (CPI), a key gauge of inflation, China's National Development and Reform Commission, ministries of civil affairs, finance, human resource and social security and the National Bureau of Statistics said.

Temporary help will be given to the needy when CPI rises 3 to 4 percent or the grain price increases by 10 percent on a year-on-year basis for three consecutive months. Local governments should set the threshhold according to regional conditions.

The mechanism will be mananged by provincial or city level governments and the amount calculated monthly and distributed quarterly.

The subsidy will be included in the local government's fiscal budget and the central government will enhance financial support for the low-income community.