China inflation hits 3-year high
By Wang Yanlin |
July 10, 2011, Sunday
|
Print Edition
Print Edition
CHINA'S inflation rate grew at the fastest pace in three years last month, higher than previous expectation amid an already slowing economy.
Consumer price index, the main gauge of inflation, climbed 6.4 percent from a year earlier in June, the National Bureau of Statistics said yesterday. It was a sharp jump over May's 5.5 percent as costs of food rocketed 14.4 percent, up from 11.7 percent a month earlier.
Pork prices even gained an annualized 57.1 percent, the bureau said.
Producer price index, the factory-gate measurement of inflation, also swelled 7.1 percent year on year last month, compared with 6.8 percent in May.
"The released data turned out to be higher than expected because of the underestimation of food price hikes and last year's lower comparative base," said Lu Zhengwei, an Industrial Bank senior economist.
He said the inflation rate will remain high in the coming months, and may create new records if not properly managed. To tame rising prices, China should raise interest rates once or twice in the rest of the year, Lu said.
Some economists had forecast consumer prices might increase 6.2 percent last month.
However, Jing Ulrich, managing director and chairman of global markets in China at J.P. Morgan, said June's figure might be the peak of this round of inflation.
"The pace of moderation may be slower at first, but it will accelerate with various tightening measures taking effect," Ulrich said. "We think it will drop below 5 percent by October and stay close to 4 percent at the year end."
China announced an interest rate increase of 25 basis points last Wednesday, the third time this year and the fifth increase since October when China shifted to a prudent monetary policy stance. The move was considered preemptive of a high inflation rate.
The National Bureau of Statistics released the inflation rate two days ahead of schedule to shorten the time between data production and release, in a bid to avoid illegal leakage.
Consumer price index, the main gauge of inflation, climbed 6.4 percent from a year earlier in June, the National Bureau of Statistics said yesterday. It was a sharp jump over May's 5.5 percent as costs of food rocketed 14.4 percent, up from 11.7 percent a month earlier.
Pork prices even gained an annualized 57.1 percent, the bureau said.
Producer price index, the factory-gate measurement of inflation, also swelled 7.1 percent year on year last month, compared with 6.8 percent in May.
"The released data turned out to be higher than expected because of the underestimation of food price hikes and last year's lower comparative base," said Lu Zhengwei, an Industrial Bank senior economist.
He said the inflation rate will remain high in the coming months, and may create new records if not properly managed. To tame rising prices, China should raise interest rates once or twice in the rest of the year, Lu said.
Some economists had forecast consumer prices might increase 6.2 percent last month.
However, Jing Ulrich, managing director and chairman of global markets in China at J.P. Morgan, said June's figure might be the peak of this round of inflation.
"The pace of moderation may be slower at first, but it will accelerate with various tightening measures taking effect," Ulrich said. "We think it will drop below 5 percent by October and stay close to 4 percent at the year end."
China announced an interest rate increase of 25 basis points last Wednesday, the third time this year and the fifth increase since October when China shifted to a prudent monetary policy stance. The move was considered preemptive of a high inflation rate.
The National Bureau of Statistics released the inflation rate two days ahead of schedule to shorten the time between data production and release, in a bid to avoid illegal leakage.
- 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.
