PBOC warns of higher inflationary pressure
Source: Xinhua |
February 7, 2013, Thursday
|
Print Edition
Print Edition
CHINA'S central bank yesterday warned of inflationary pressure, saying the influence of rebounding demand, labor supply changes and global monetary easing on prices must be watched closely.
The recovery in the economy and in demand may translate into consumer price movements very quickly and "particular attention needs to be paid to the effect of changing expectations on future prices," the People's Bank of China said in its quarterly monetary policy report.
"During the stage of economic transition, the prevention of inflation risks should always be a highlight in financial macro-control," the report said.
The remarks came after China's inflation rate ticked up in the past few months as the country's economy ended a seven-quarter slowdown and accelerated to a 7.9 percent year-on-year growth in the fourth quarter of 2012.
The Consumer Price Index grew 2.5 percent from a year earlier in December, up from 2 percent in November and 1.7 percent in October.
The National Bureau of Statistics is set to unveil the January CPI figure this week.
Although prices are relatively stable now, uncertainties are rising, the central bank warned.
As China's working-age population grows slower, prices of labor-intensive farm produce and services will rise, it said.
Meanwhile, the ultra-loose global monetary supply will remain for quite a long period, making it necessary to spot potential imported inflation, according to the report.
The PBOC reiterated it will continue with a prudent, more forward-looking, targeted and flexible monetary policy.
It pledged to keep a reasonable market liquidity and ensure credit and social financing grow steadily and properly.
Credit support will be strengthened for key national projects, the rural sector, small enterprises, modern services and emerging industries, the central bank said.
Speculation and investment demand in real estate will continue to be curbed, it said.
It noted that China's economy will hopefully maintain steady and relatively fast growth.
"The momentum of sustained growth remains strong, and positive factors that can drive domestic demand up are increasing," it said.
But the report said the weak recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.
The recovery in the economy and in demand may translate into consumer price movements very quickly and "particular attention needs to be paid to the effect of changing expectations on future prices," the People's Bank of China said in its quarterly monetary policy report.
"During the stage of economic transition, the prevention of inflation risks should always be a highlight in financial macro-control," the report said.
The remarks came after China's inflation rate ticked up in the past few months as the country's economy ended a seven-quarter slowdown and accelerated to a 7.9 percent year-on-year growth in the fourth quarter of 2012.
The Consumer Price Index grew 2.5 percent from a year earlier in December, up from 2 percent in November and 1.7 percent in October.
The National Bureau of Statistics is set to unveil the January CPI figure this week.
Although prices are relatively stable now, uncertainties are rising, the central bank warned.
As China's working-age population grows slower, prices of labor-intensive farm produce and services will rise, it said.
Meanwhile, the ultra-loose global monetary supply will remain for quite a long period, making it necessary to spot potential imported inflation, according to the report.
The PBOC reiterated it will continue with a prudent, more forward-looking, targeted and flexible monetary policy.
It pledged to keep a reasonable market liquidity and ensure credit and social financing grow steadily and properly.
Credit support will be strengthened for key national projects, the rural sector, small enterprises, modern services and emerging industries, the central bank said.
Speculation and investment demand in real estate will continue to be curbed, it said.
It noted that China's economy will hopefully maintain steady and relatively fast growth.
"The momentum of sustained growth remains strong, and positive factors that can drive domestic demand up are increasing," it said.
But the report said the weak recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.
- 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.
