Inflation under 3.5% possible
By Joyce Pan |
November 3, 2010, Wednesday
|
Print Edition
Print Edition
CHINA can achieve the challenging task of keeping inflation level below 3.5 percent this year, Yao Jingyuan, chief economist of the National Statistics Bureau, said at a financial forum yesterday.
Yao is confident that it is achievable to contain the rise in the Consumer Price Index, a major gauge of inflation, to around 3 percent.
Premier Wen Jiabao has set a goal of 3 percent average inflation this year. But the CPI rose to 3.6 percent in September, the highest in 23 months. In the first three quarters, the CPI stood at 2.9 percent.
"Increases in food prices are pushing the CPI up and creating much pressure on inflation," Yao said. "CPI is expected to have peaked in October and then to fall."
Increases in food costs contributed 70 percent to the rise in consumer prices recently. In the coming months, vegetable prices will be affected by last month's severe storms in Hainan Province, which damaged farms, while meat prices are seen to rise as consumption increases in winter.
"To stabilize consumer prices, food prices and housing prices as well as market liquidity should be closely watched," Yao said.
China has taken several measures to cut food prices by increasing vegetable production and improving retail services. At the end of last month, China unexpectedly raised interest rates by 0.25 basis point, the first rise in 34 months, to rein in inflation.
Yao also estimated China's gross domestic product to expand 10 percent this year.
Yao is confident that it is achievable to contain the rise in the Consumer Price Index, a major gauge of inflation, to around 3 percent.
Premier Wen Jiabao has set a goal of 3 percent average inflation this year. But the CPI rose to 3.6 percent in September, the highest in 23 months. In the first three quarters, the CPI stood at 2.9 percent.
"Increases in food prices are pushing the CPI up and creating much pressure on inflation," Yao said. "CPI is expected to have peaked in October and then to fall."
Increases in food costs contributed 70 percent to the rise in consumer prices recently. In the coming months, vegetable prices will be affected by last month's severe storms in Hainan Province, which damaged farms, while meat prices are seen to rise as consumption increases in winter.
"To stabilize consumer prices, food prices and housing prices as well as market liquidity should be closely watched," Yao said.
China has taken several measures to cut food prices by increasing vegetable production and improving retail services. At the end of last month, China unexpectedly raised interest rates by 0.25 basis point, the first rise in 34 months, to rein in inflation.
Yao also estimated China's gross domestic product to expand 10 percent this year.
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