Related News
China CPI rises at slowest pace in 30 months
By Wang Yanlin |
August 9, 2012, Thursday
|
Online Edition
Online Edition
CHINA'S inflation expanded at the slowest pace in 30 months in July, allowing more room for policy easing to encourage growth in the world's second-largest economy.
The Consumer Price Index, the main gauge of inflation, rose 1.8 percent from a year earlier last month, the National Bureau of Statistics said this morning.
The rate, largely in line with the market expectation, slowed further from June's increase of 2.2 percent and May's rise of 3 percent.
"Inflation continued to ease in July, offering room for monetary policy easing," said Liu Ligang, an economist at Australia & New Zealand Banking Group Ltd.
Liu said the central bank should reduce reserve requirement ratio as early as this month to offset capital outflows and spur growth, and two more RRR cuts may follow later this year to support a cyclical upturn.
However, Liu also cautioned about the possibility of an inflation rebound.
"With base effect beginning to diminish, inflation rates will gradually pick up towards the end of the year, though at a modest pace," Liu said.
The CPI slowdown in July was led by less growth in food costs, a leading factor to influence the inflation reading. It rose 2.4 percent year on year last month, compared with a jump of 3.8 percent in June.
In the first seven months, China's inflation advanced 3.1 percent from a year earlier.
Meanwhile, the Producer Price Index, the factory-gate gauge of inflation and a harbinger of future consumer prices, fell 2.9 percent year on year in July, extending the loss for a fifth month.
China has cut interest rates twice in the past two months after its gross domestic product expanded 7.6 percent in the second quarter, its slowest pace in three years.
The Consumer Price Index, the main gauge of inflation, rose 1.8 percent from a year earlier last month, the National Bureau of Statistics said this morning.
The rate, largely in line with the market expectation, slowed further from June's increase of 2.2 percent and May's rise of 3 percent.
"Inflation continued to ease in July, offering room for monetary policy easing," said Liu Ligang, an economist at Australia & New Zealand Banking Group Ltd.
Liu said the central bank should reduce reserve requirement ratio as early as this month to offset capital outflows and spur growth, and two more RRR cuts may follow later this year to support a cyclical upturn.
However, Liu also cautioned about the possibility of an inflation rebound.
"With base effect beginning to diminish, inflation rates will gradually pick up towards the end of the year, though at a modest pace," Liu said.
The CPI slowdown in July was led by less growth in food costs, a leading factor to influence the inflation reading. It rose 2.4 percent year on year last month, compared with a jump of 3.8 percent in June.
In the first seven months, China's inflation advanced 3.1 percent from a year earlier.
Meanwhile, the Producer Price Index, the factory-gate gauge of inflation and a harbinger of future consumer prices, fell 2.9 percent year on year in July, extending the loss for a fifth month.
China has cut interest rates twice in the past two months after its gross domestic product expanded 7.6 percent in the second quarter, its slowest pace in three years.
- 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.
