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Flooding across eastern, southern and southwestern China has so far claimed at least 175 lives and is causing significant damage to vegetable crops, according to press reports.

The flood damage to farms, caused by heavy rains that started early this month, is adding upward pressure on food prices at a time when the government is struggling to contain inflation.

Farmers in some areas told state media that vegetable output was down by 20 per cent. And the official Xinhua News Agency said prices of green vegetables were up 40 per cent in certain regions. 

"The estimate is that the overall `food` price increase in June will be higher than May," China's National Development and Reform Commission is quoted as saying in the world press.

Food costs jumped 11.7 per cent in May and inflation hit a 34-month high of 5.5 per cent, according to the agency. 

According to Boston.com, private sector analysts blame China's inflation on the dual factors of demand fuelled by higher incomes that is outstripping food supplies and the effects of a bank-lending boom.

The Chinese government has raised interest rates four times since October in an effort to contain inflation, and has told banks to limit lending, the report said.

The state media has called the flooding the worst in decades in some regions.