The first quarter of 2011 has been a season of price hikes in China. CPI data, a major gauge of inflation, have remained high in the first 2 months of the year. The figure is expected to surpass 5 percent in the soon-to-be-released March report. The CPI data is a reflection of price hikes.

Dairy products are among the first to increase the price this year. Due to the price hike of material milk, dairy products including milk, biscuit and cake all increase the price by 5 to 10 percent. Gasoline and diesel costs were up by 500 yuan and 400 yuan per ton last Thursday. That's the second time there have been such price increases in 2011 alone. The price jump of gasoline trickled down to commuters, as it meant an increase in transportation costs.

And taxis in Beijing are now charging two yuan in gasoline surcharge fees on rides over 3 kilometers. Price tags on food, clothes and other daily necessities are expected to rise as well. Meanwhile, Procter & Gamble and Unilever, among others, had planned to a 15 percent price increase on their products during April, but the move was postponed by the Chinese authorities.

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