Inflation likely to remain high
Source: Xinhua |
August 26, 2011, Friday
|
Print Edition
Print Edition
INFLATIONARY expectations in China may continue to grow and prices are likely to remain high, making the government's price control targets harder to achieve, a senior official said yesterday.
"Global liquidity will remain abundant in the short term and imported inflationary pressure has not eased by much," said Zhang Ping, head of the National Development and Reform Commission.
Zhang made the remarks in a report on the implementation of a national economic and social development plan for the first seven months of this year. He presented the report to a bimonthly session of the National People's Congress Standing Committee.
Other factors keeping prices high include rising production costs, seasonal supply shortages of farm produce and the possibility of natural disasters, Zhang said.
The price of pork, the staple meat, surged 56.7 percent annually in July, while the Consumer Price Index for the month rose 6.5 percent year on year to hit its highest level in 37 months.
In the first seven months, the CPI rose an annual 5.5 percent, above the government's target of 4 percent for this year.
Zhang said that a faltering global economic recovery has complicated China's macro-economic control.
"The world economy is continuing to recover, but in a very fragile and unbalanced way," Zhang told the session.
He added the global recovery is uncertain due to sluggish growth, rising inflation and debt woes in the United States, the eurozone and Japan.
Oil price swings following turbulence in West Asia and North Africa as well as financial turmoil caused by a downgrade in the US sovereign credit rating will also affect China, he said.
"Global liquidity will remain abundant in the short term and imported inflationary pressure has not eased by much," said Zhang Ping, head of the National Development and Reform Commission.
Zhang made the remarks in a report on the implementation of a national economic and social development plan for the first seven months of this year. He presented the report to a bimonthly session of the National People's Congress Standing Committee.
Other factors keeping prices high include rising production costs, seasonal supply shortages of farm produce and the possibility of natural disasters, Zhang said.
The price of pork, the staple meat, surged 56.7 percent annually in July, while the Consumer Price Index for the month rose 6.5 percent year on year to hit its highest level in 37 months.
In the first seven months, the CPI rose an annual 5.5 percent, above the government's target of 4 percent for this year.
Zhang said that a faltering global economic recovery has complicated China's macro-economic control.
"The world economy is continuing to recover, but in a very fragile and unbalanced way," Zhang told the session.
He added the global recovery is uncertain due to sluggish growth, rising inflation and debt woes in the United States, the eurozone and Japan.
Oil price swings following turbulence in West Asia and North Africa as well as financial turmoil caused by a downgrade in the US sovereign credit rating will also affect China, he said.
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