China's more than 700 million farmers are happier than before despite a growing wealth gap, while poor urban residents are being squeezed by rising food and property prices, says a Government think-tank.
Chinese farmers' satisfaction level has risen but that of urban dwellers has dropped, both due to
a jump in food prices, which has driven up rural incomes but means people in towns and cities have to spend more, researchers say. Annual consumer inflation is running at the quickest pace in more than a decade, driven largely by a spike in food prices, which has pushed a government fearful of social unrest to pump up agricultural subsidies.
"Price rises have had a large impact on the lives of urban residents, yet they have been of some help to rural residents," the report said.
- REUTERS
