(Xinhua)
Updated: 2008-03-05 06:50

BEIJING -- China's Ministries of Finance and Education have agreed to allocate a subsidy of 189.28 million yuan(about US$25.57 million) to college cafeterias offset the burden of rising inflation.

It was revealed by Zhang Shaochun, Vice Minister of MOF, at a nationwide teleconference jointly held by the two ministries on Tuesday in which Education Minister Zhou Ji warned that colleges are forbidden to make profit in cafeterias.

Related readings:  CPI rises to 7.1%, worst in 11 years

According to the ministries, the size of the subsidy is calculated by 20 yuan per student.

The two ministries also asked local education authorities and colleges to subsidize college cafeterias from their resources.

The MOF has allocated two emergent subsidies to universities managed by central government in last July and December to offset a growing inflation which has worsened college student's meals.

China's Consumer Price Index in January increased 7.1 percent from the same month of 2007, the highest since October 1996.

A month-long severe snow and ice disaster in southern China further stressed supply and pushed up the inflation rate.