More than half of all Chinese provincial-level regions have established a mechanism to offer subsidies to the needy as high inflation pushes up their daily living costs.

The National Development and Reform Commission (NDRC), the country's top economic planner, said Friday that 18 provinces, autonomous regions and municipalities had set up the mechanism to give financial support to the needy in both urban and rural areas.

Another six provincial-level regions will implement the mechanism before the end of August.

The NDRC statement said the entire country will be covered by the end of this year.

The scheme mainly covers the disabled, the low-income residents and the unemployed. In Tianjin, a monthly subsidy of 20 yuan is offered to the needy if the consumer price index (CPI), the main gauge of inflation, rises between 3-5 percent; if the CPI rises between 5-7 percent, the subsidy will rise to 30 yuan.

Most regions will hand out subsidies if the price index surges above 4 percent.

"The mechanism seeks to ensure that the quality of people's lives are not reduced despite the rises in consumer prices," said an official with the NDRC, who spoke on the condition of anonymity.

China's CPI shot up 5.5 percent year-on-year in May, a 34-month high.

The index rose 5 percent in the first quarter and 5.3 percent in April, well above the government's 4-percent target for the whole year.

The NDRC said earlier this week that the country's inflation rate will accelerate this month despite the government's efforts to stem price increases. It estimated that June's overall price levels will be higher than those of May.

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