Chinese tighten their belts as inflation quickens
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Take a shower once a week and save the water to wash the clothes and then flush your toilet.
That's the advice handed out by the "Kou Kou Zu" website to the growing number of Chinese who are struggling to make ends meet.
Kou Kou Zu, or the stingy group, was established in July 2009. It is part of a growing movement that caters to millions of ordinary Chinese who are feeling the pinch of rising food prices and soaring costs.
It also tells its members to put two plastic bottles in the toilet tank to ensure a low water-consumption flush; reduce the frequency of hair-dressing; eschew restaurants for company and school canteens; go shopping online instead of shopping malls.
Despite giving people tips on how to save money, the Kou Kou Zu also share free coupons and discount information online.
Most Kou Kou Zu members were born in the 1980s. They are often accused of being spoiled and of lacking financial awareness.
"Knowing how to save money is the overriding principle as the global economic outlook is uncertain," said netizen "Cha Guan Dian Xiao'er," or "teahouse waiter," who claimed to be a Kou Kou. "We'd like to spend smart and consume rationally."
"I'll save every penny and say no to any unnecessary spending," the netizen said.
However, analysts said the popularity of saving indicates a decrease in consumer confidence because of inflation concerns.
News of food price increases -- wheat, garlic, mung bean, sugar, apple and potato -- had dominated Chinese headlines this year.
The price of food, which accounts for one third of consumer price index (CPI) calculations, boosted China's inflation rate to 4.4 percent in October, the highest level in more than two years.
For the first 10 months, the CPI rose 3 percent from a year earlier, equal to the ceiling of the government's full-year target.
Ma Delun, deputy governor of China's central bank, has said the central bank will not leave inflation unchecked.
"China needs to do more to keep inflation this year under the government-set target ceiling," said National Bureau of Statistics spokesman Sheng Laiyun.
Pressure for further price increases are mounting, while quantitative easing policies taken by other economies will fuel Chinese inflation expectations, Sheng said.
The Chinese government has been striving to curb inflation and maintain its economy's momentum after it rebounded from the global financial crisis.
China's central bank raised benchmark interest rates last month and ordered banks to set aside more reserves Wednesday in an effort to rein in liquidity.
"Judging from the current situation, China's CPI growth is unlikely to ease in the following two months," said China Citic Securities analyst Zhu Jianfang.
Zhu said China's central bank might raise the benchmark interest rates again, by 25 basis points, before the end of the year.
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