Related News
August Inflation eases, suggests end to monetary tightening
By Wang Yanlin |
September 9, 2011, Friday
|
Online Edition
Online Edition
CHINA'S inflation growth finally slowed down in August, raising hopes that policymakers may abstain from further monetary tightening measures.
The Consumer Price Index, a main gauge of inflation, expanded 6.2 percent from a year earlier last month – slightly below the 37-month high of 6.5 percent in July, the National Bureau of Statistics said this morning.
Food costs, a major inflation driver, rose 13.4 percent year on year, down from July's 14.8 percent and June's 14.4 percent.
The Producer Price Index, a factory-gate measurement of inflation, swelled 7.3 percent on an annual basis in August, also easing from a rate of 7.5 percent a month earlier.
"The August data seem to confirm our view that 'inflation peaked in July' and we now expect no more interest rate increases in 2011," said Chang Jian, an economist at Barclays Capital said.
"We think inflation will likely only come down gradually, and the month-on-month momentum in consumer prices is a key to watch for a shift in the central bank's anti-inflation measures," Chang said, adding there may be no loosening of monetary policy in the near term, but some "selective" or "targeted" easing measures are likely in the coming months.
China has raised the interest rates three times so far this year to tame inflation, together with six reserve requirement ratio hikes that demanded commercial banks to put aside more money as reserves.
The Consumer Price Index, a main gauge of inflation, expanded 6.2 percent from a year earlier last month – slightly below the 37-month high of 6.5 percent in July, the National Bureau of Statistics said this morning.
Food costs, a major inflation driver, rose 13.4 percent year on year, down from July's 14.8 percent and June's 14.4 percent.
The Producer Price Index, a factory-gate measurement of inflation, swelled 7.3 percent on an annual basis in August, also easing from a rate of 7.5 percent a month earlier.
"The August data seem to confirm our view that 'inflation peaked in July' and we now expect no more interest rate increases in 2011," said Chang Jian, an economist at Barclays Capital said.
"We think inflation will likely only come down gradually, and the month-on-month momentum in consumer prices is a key to watch for a shift in the central bank's anti-inflation measures," Chang said, adding there may be no loosening of monetary policy in the near term, but some "selective" or "targeted" easing measures are likely in the coming months.
China has raised the interest rates three times so far this year to tame inflation, together with six reserve requirement ratio hikes that demanded commercial banks to put aside more money as reserves.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
