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How will the drought affect inflation?

  • Published 02 Jun 2011

Serious droughts along the Yangtze river have caused fishing yields to plummet and are likely to impact the summer rice harvest.

By May 29, the persistent drought in the Yangtze river has affected 104.4m mu (6.96m hectares) of farmland in China. As summer is the most important sowing season and the farmland along the Yangtze river is one of largest rice production bases in China, experts estimate that the drought may push up the Consumer Price Index (CPI) in May and thereafter.

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