China has seen continuous inflation over the past two and a half years, with the rising cost of food leading the surge. Many restaurants in China are starting to feel the pinch, as Feng Jinchao explains.

It's approaching noon. And as ever, restaurant chefs are busy preparing lunch for customers.

In recent years, restaurant and cafe owners have had to get used to ever higher running costs.

Rao Zhengyu, a restaurant owner said, "The price of ingredients have been getting higher. Spices, Vegetables, Eggs, Oil, and especially pork meat."

In the past year, pork prices in China have increased 57 percent. It's become one of the major factors powering inflation.

In a country that ranks among the world's top consumers of pork, Chinese restaurants face a serious struggle.

Rao said, "Of course rising pork prices make things harder. But we can't increase our sales prices in line with costs, as the customers won't come in to eat."

The rising cost of food is not the only thing concerning Rao. Labor costs have almost doubled, as inflation has taken hold.

Fortunately, most customers are still coming in to eat.

A customer said, "It's ok. I don't feel the bills have increased a huge amount. I'll keep going to restaurants as much as I did before."

This current round of inflation has lasted over thirty months.

China's CPI rose to a record high of 6.5 percent year on year in July - up from 6.4 percent in June.

It's the fastest increase since June 2008.

Go to Forum >>0 Comment(s)