China's consumer price index, or CPI, has hit its highest monthly level since 1997 with an increase of over 7 percent. The January's figure was released Tuesday by the National Bureau of Statistics. CRI talked to some experts to explore reasons behind such a hike.

Dandan reports.

For some experts, the biggest monthly increase is well anticipated.

Li Daokui, Director of the Center for China in the World Economy from Beijing-based Tsinghua University, explains.

"One reason is the price increases in pork and grain, and second reason is the surging price of commodities, international price of commodities, such as fuel, aluminum and iron ore, and so on."

Aside from these two factors, the CPI hike is also due to the people's active consumption during January's preparation for the Lunar New Year--Spring Festival which fell in early February.

Zhuang Jian is a senior economist with Asian Development Bank's Resident Mission in China.

"This severe storm distorted transportation and cause some shortage in food supply, especially vegetable. So as a result, vegetable prices rose by 13.3 pct in general, compare to 9.5 pct in December last year."

As for what kind of measures the central government should take, however, experts have different opinions. Li Daokui from the Tsinghua University believes that interest rates increase could be an option.

Here's Li Daokui again.

"No.1 is they will increase the interest rates, especially the deposit rate, especially the one-year fixed term deposit rate. Second measure is to announce new incentive programs to encourage farmers to supply pork, to raise pigs. The third measure is very likely fast pace of RMB appreciation."

But Zhuang Jian from the Asian Development Bank has a different opinioin. He prefers increases in the reserve requirement ratio for commercial banks over interest rate rises.

Dandan, CRI News.