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BEIJING, Dec. 30 (Xinhua) -- China's Ministry of Civil Affairs (MCA) has ordered measures to offset the impact of inflation on "people with difficulties" to ensure their ability to subsist, especially during the New Year and the Spring Festival.Rising food costs alongside other factors have been driving up China's inflation. For instance, the consumer price index (CPI) increased by 5.1 percent last month, hitting a 28-month high.In a recent notice to local civil affairs authorities, the MCA ordered "effective measures" to minimize the impact of inflation on low-income groups and other groups of people having financial difficulties.Civil affairs authorities should set proper living allowances for these groups by assessing the impact of rising prices on their lives, the notice said.Further, a mechanism that ensures living allowances are raised at the same rate as rising prices should be established, and the amount of living allowances should be raised.The notice also ordered local civil affairs authorities to rescue the homeless in cities and help them throughout the winter.The Spring Festival, also known as the Chinese Lunar New Year, will fall on Feb.3, 2011. It is the most important festival for people of Chinese origin as it is an occasion for reunions of family members, relatives and friends.

NINGBO, Zhejiang, Dec. 7 (Xinhua) -- Chinese Vice Premier Li Keqiang called for building affordable housing on a massive scale in the next few years.Li made the remarks during a two-day inspection tour to Ningbo in east China's Zhejiang Province, which ended Tuesday.Li said the country's affordable-housing policy would continue in the upcoming years so as to substantially raise the percentage of affordable housing in the real-estate market.Li urged local governments to support such projects with additional funding and land distribution.Chinese Vice Premier Li Keqiang (R, Front) shakes hands with a worker at a construction site in Haishu District of Ningbo City, east China's Zhejiang Province, Dec. 7, 2010. Li called for building affordable housing on a massive scale in the next few years during a two-day inspection tour to Ningbo.Li also called on authorities to ensure transparency and fairness in the distribution process, to benefit those in real need.The Chinese government introduced various policies to cool down the real-estate market this year.Li stressed the need to discourage house purchases that are for the purpose of investment and speculation, and to increase the supply of affordable housing.

PORT LOUIS, Jan. 8 (Xinhua) -- China has signed an economic and trade cooperation accord with Mauritius worth about 9 million U.S. dollars, including 6 million dollars grant and 3 million dollars interest-free loan.The accord was signed on Friday and the signing ceremony was attended by visiting Chinese Vice Premier Hui Liangyu and Mauritius Vice Prime Minister and Minister of Finance and Economic Development Pravind Kumar Jugnauth.According to the accord, the grant and loan will fund projects agreed on by the two governments in the future.Hui and Jugnauth also agreed on boosting cooperation in science and culture and implementing the programs of the accord signed by the two sides.Visiting Chinese Vice Premier Hui Liangyu (Central L) meets with Mauritius Vice Prime Minister and Minister of Finance and Economic Development Pravind Kumar Jugnauth (Central R) in Port Louis, Mauritius, Jan. 7, 2011.Hui also met Mauritius Prime Minister Navinchandra Ramgoolam in the capital of Port Louis on Friday when he started a three-day official visit to Mauritius.During the meeting, Hui commended the bilateral cooperation since the two countries established diplomatic ties in 1972 and the promising trend to further strengthen the ties in cultural exchange, education and tourism.He thanked the Mauritius government for its support on issues concerning the core interests of China.Hui noted that the two countries should keep pushing for extensive cooperation and high level exchange of visits, continue to building political trust between the two governments and implement the measures in the framework of China-Africa Cooperation Forum.Ramgoolam also spoke highly of the fruitful cooperation between the two countries and thanked China for the assistance in improving the country's infrastructure including a new international airport which is under construction.Hui held talks with Mauritius opposition leader Paul Berenger on Saturday afternoon before he wraps up his visit to Mauritius, the first leg of his five-African country tour which will also take him to Zambia, the Democratic Republic of Congo, Cameroon and Senegal.

BEIJING, Dec. 25 (Xinhua) -- China 's central bank announced Saturday that it will raise the one-year lending and deposit interest rate for the second time this year, as the government continues its battle against surging prices.The People's Bank of China (PBOC) said in a statement posted on its website that it will hike the benchmark interest rate by 25 basis points beginning Sunday, which raised the one-year lending rate to 5.81 percent and one-year deposit rate to 2.75 percent.The PBOC increased the benchmark lending and deposit rates by 25 basis points on Oct. 20, which was the first increase in nearly three years.The rate hike came after the central bank vice governor, Hu Xiaolian, said Friday that China would bring its overall money supply to a normal level using various policy tools, as the government shifts monetary policy from "moderately loose" to "prudent" to rein in rising inflationary pressures and curb asset bubbles.Photo taken on Nov. 18, 2010 shows a teller counting the Renminbi at a bank in Qionghai City, south China's Hainan Province. China's central bank will raise the one-year lending and deposit interests rate by 25 basis points from Dec. 26, 2010, according to a statement posted on the website of the People's Bank of China Saturday.The country's consumer price index (CPI), a main gauge of inflation, accelerated to a 28-month high in November of 5.1 percent, while new loans reached 7.45 trillion yuan in the first 11 months of this year, compared to the government's full-year target of 7.5 trillion yuan.A recent PBOC survey also showed that the proportion of Chinese citizens satisfied with the current price level had sunk to an 11-year low, and only 17.3 percent of the consumers said they intended to consume more in the future.Rising prices have prompted the government to take measures to rein in the hikes, including boosting supplies and providing financial aid to the needy.Li Daokui, a member of the monetary policy committee with the PBOC, said the rate hike mainly aimed at managing inflationary expectations and reflected the policy shift, as tightening the money supply is the best way to curb inflation.The rate increase came "at the right time", as western countries are celebrating the Christmas holiday, to avoid overreaction from the global markets, Li added.Besides interest rate hikes, China had increased the bank reserve requirement ratio six times in 2010 to 18.5 percent and 19 percent for some large commercial banks."The decision was made in consideration of China's economic condition next year," said Lian Ping, chief economist with the Bank of Communications, the country's fifth largest lender, who described fighting inflation as the central bank's primary task at present.Lian expected inflation to continue to go up in the first quarter next year due to rises both in demand and cost, as well as other influences from the external market.His views were echoed by Zhuang Jian, chief economist with the Asian Development Bank, who also attributed rising inflation to holiday seasons and the extreme winter weather.Observers believe that further rate hikes are to be expected since solving inflation and liquidity pressure at the same time is considered a difficult task."You cannot expect one or two rate rises to have a significant impact on economic indicators," said Zuo Xiaolei, chief economist with Galaxy Securities.However, Lian said China only has room for two or three rate hikes, as higher interest rates would increase risks of "hot money" inflows due to a widening interest margin between China and the United States, which is likely to keep rates low.Li Daokui also attributed the timing of the rate increase to avoiding rapid capital inflows.But currently the factors that decides the direction of capital flows are currency exchange rates and assets prices, Lian added.UBS Securities economist Wang Tao said last month that she expected the central bank to raise the interest rate by 25 basis points before the end of the year and by another 75 basis points in 2011.China's economy grew 9.6 percent year on year in the third quarter this year, slowing from the 10.3 percent increase in the second quarter and 11.9 percent in the first quarter.The country targets about a 3 percent inflation rate in 2010.