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Surging prices overshadow salary growth

2011-08-09 12:05    Ecns.cn     Web Editor: Ren Jie
China's CPI jumped 6.5 percent year-on-year in July.

China's CPI jumped 6.5 percent year-on-year in July.

(Ecns.cn)--Even though her monthly salary has increased by 500 yuan since January, Ms. Wang finds it hard to relax in the face of rising food prices and increased lending rates.

Most Chinese urban residents have not felt an increase in their incomes, although according to the National Bureau of Statistics (NBS) the disposable income of Chinese urban residents rose 7.6 percent in the first half, allowing for price fluctuations, the People's Daily reported.

Wages increased

During the first quarter of this year, 13 provinces raised their minimum wages amid rising inflationary pressure and growing concern over China's widening wealth gap. The increases averaged 20.6 percent, according to Xinhuanet.

The statutory minimum monthly wage in Shenzhen is 1,320 yuan, the highest level in China, while Beijing has the highest hourly rate of 13 yuan, the report said.

In addition, China's minimum wage will grow by an average rate of at least 13 percent over the next five years, the Ministry of Human Resources and Social Security said in June. Minimum wages in most parts of the country will reach more than 40 percent of the average income of local urban residents by 2015, the ministry also said.

Compared to urban white-collars, rural residents encountered a higher growth in their income in the first half. According to official data, the growth of rural residents' income was raised 20.4 percent year-on-year. However, the real growth would be 13.7 percent after taking prices into consideration, exceeding the 7.6-percent growth of urban residents' incomes.

Zhou Guangming, a peasant worker at a furniture factory in Xianghe County, Hebei Province, was more satisfied with his payment this year. "My salary increased a lot this year, from 4,000 yuan to more than 5,000 a month," he told the People's Daily, adding that he planned to buy a new house in his hometown.

Immigrant workers were in hot demand due to a labor shortage in some areas, which drove up salaries, experts said. Meanwhile, the increase of agricultural product prices in the first half and the central government's supportive policies also helped peasants boost their incomes.