Related News
Inflation fears loom, say analysts
By Wang Yanlin |
June 7, 2010, Monday
|
Online Edition
Online Edition
CHINA will continue to present strong economic data for May, but inflation is also set to rise, analysts predicted today.
This will lay a foundation for the country to exit gradually from a relatively easy fiscal and monetary policy stance, they said.
The key economic data for May, due to be released this Friday, are critical for China to make its decision on when to announce a retreat from the stimulus package and expansionary policies.
"China has actually been tightening the policies ever since the beginning of this year," said Li Maoyu, an analyst at Changjiang Securities Co. "An official announcement will work primarily on the sentiment, making people more aware of the risk of inflation and economic overheating."
Li estimated the Consumer Price Index, the main gauge of inflation, may rise to a 20-month high of 3 percent in May, up from the increase of 2.8 percent in April. It was still conservative compared with some other estimates as high as 3.5 percent, according to a Reuters analysis report.
Li said the Producer Price Index, the factory-gate measure of inflation, could increase 6.9 percent from a year earlier last month, higher than the gain of 6.8 percent in April. It indicated consumer prices would continue to grow faster in the coming months as higher production costs would eventually be digested into goods.
This will lay a foundation for the country to exit gradually from a relatively easy fiscal and monetary policy stance, they said.
The key economic data for May, due to be released this Friday, are critical for China to make its decision on when to announce a retreat from the stimulus package and expansionary policies.
"China has actually been tightening the policies ever since the beginning of this year," said Li Maoyu, an analyst at Changjiang Securities Co. "An official announcement will work primarily on the sentiment, making people more aware of the risk of inflation and economic overheating."
Li estimated the Consumer Price Index, the main gauge of inflation, may rise to a 20-month high of 3 percent in May, up from the increase of 2.8 percent in April. It was still conservative compared with some other estimates as high as 3.5 percent, according to a Reuters analysis report.
Li said the Producer Price Index, the factory-gate measure of inflation, could increase 6.9 percent from a year earlier last month, higher than the gain of 6.8 percent in April. It indicated consumer prices would continue to grow faster in the coming months as higher production costs would eventually be digested into goods.
- 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.
