China inflation spells lean time for hungry ghosts

KUALA LUMPUR, Aug 20 (Reuters) Inflation in China is not just an earthly concern; it is also a problem in the afterlife, according to suppliers of goods used by Chinese worshippers.

In Malaysia, home to more than 6 million ethnic Chinese, the price of fake money that is burnt as offerings to the dead has jumped by up to 20 per cent because the colourful bills are made in China where costs are rising, a local daily said today.

The New Straits Times quoted the Malaysia Worship Items Dealers Association as saying a stronger yuan and a cut in state subsidies to Chinese manufacturers were driving up prices of a range of imported devotional items, including joss sticks.

Tan Lee Meng, a Malaysian dealer, told the newspaper that sales were down during the current ''hungry ghost'' festival, when ethnic Chinese burn paper money and paper effigies of houses, cars and servants for spirits to use in the afterlife.

''Lower purchasing power has also contributed to the drop in demand. People don't have much money to spare after settling their loans and bills,'' Tan said.

REUTERS SW KP0924