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China to increase allowance for BPL families

The move from July one will see the Minimum salary for city employees rise from 730 Yuan (USD 106) to 800 Yuan or 4.6 Yuan an hour, state media reported.

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BEIJING: The Chinese government on Saturday said it would give a 10 per cent rise in minimum salary and step up subsidies to families living below the poverty line, in an apparent move to soften the impact of rising prices the government is battling against identifying it as its biggest concern.

The move from July one coming ahead of the Beijing Olympics will see the Minimum salary for city employees rise from 730 Yuan (USD 106) to 800 Yuan or 4.6 Yuan an hour, state media reported.

In tandem, the monthly allowance for families living below the poverty line would be enhanced by 60 Yuan to 390 Yuan, the sharpest increase in the past nine years, state-run Xinhua news agency said.

The citys employment insurance, job-related injury insurance and pension would also go up, the agency said quoting Beijing News.

Chinas inflation rate reached 7.7 per cent in May, dropping from 8.5 per cent reported a month earlier which was near a 12-year monthly high of 8.7 per cent recorded in February this year, despite tight monetary policy and other measures to tame the price rise.

About 45 per cent of the people polled in a central bank nationwide survey in June still said the prices were "unacceptably high".

Inflation identified as its "biggest concern", Government has been stepping up supplies of grain, pork, staple meat in China, and other food items and imposed price controls.

The Consumer Price Index at 7.7 per cent was broadly in line with the forecasts but in excess of the 4.8 per cent annual target set by the government.

In May, the price of meat rose sharply by 37.8 per cent, that of pork surging 48 per cent. Cooking oil price rose 41.4 per cent, vegetables 10.3 per cent and aquatic products 18.3 per cent and grains 8.6 per cent.

In the first five months this year, CPI rose 8.1 per cent over the same period a year earlier  7.7 per cent for urban areas and 8.8 per cent for the countryside.

Government has vowed to maintain the CPI at 4.8 per cent this year, the same level as last year, and said it would tighten monetary policy among a raft of measures to battle inflation.

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