Shanghai sees inflation soar to a 3-year high in May
By Wang Yanlin |
June 17, 2011, Friday
|
Print Edition
Print Edition
SHANGHAI'S inflation rate soared to a three-year high in May while industrial production growth moderated strongly and fixed asset investment dropped.
Analysts said such economic complexities will require policymakers to offer new incentives to stimulate the economy, but keep monetary tightening in place to curb inflation.
The city's consumer price index, the main gauge of inflation, expanded 5.3 percent last month from a year earlier. It swelled further from the pace of 5.1 percent in April and 4.7 percent in March, the Shanghai Statistics Bureau said.
But it looked better controlled compared to the nation's inflation rate, which hit a 34-month high of 5.5 percent in May.
Shanghai's dearer prices last month were bolstered by a 10.3 percent jump in food costs, among which rice rose 15.7 percent year-on-year, meat climbed 18.2 percent and edible oil rocketed 20.1 percent. Vegetable prices, however, dropped 6.1 percent due to the government's efforts in boosting supply and curtailing retail prices.
"Inflation, especially price jumps of daily necessities like food, will deal a severe blow to ordinary households and make them spend less in other fronts," said Li Maoyu, a Changjiang Securities Co analyst. "It requires policymakers to strengthen efforts and keep monetary policies tightened."
Industrial production up
Sheng Laiyun, a spokesman at the National Bureau of Statistics, said on Tuesday that governments at all levels should put control of prices at the top of their agenda.
Shanghai's industrial production last month edged up 5.5 percent from a year earlier to 261 billion yuan (US$40.2 billion). It was 9.7 percent in April and 12.4 percent in March.
The city's six key industries - information technology, vehicles, petrochemicals, fine steel, machinery equipment and biomedicine - reported a combined growth of 4 percent to 173.9 billion yuan in May.
"Such industries are more technology intensive, and need larger funds to support their growth. The monetary tightening may have affected them more seriously," Li said.
He suggested the government map out new policies to cushion unwanted blows to those industries, guaranteeing a proper pace for Shanghai's economic restructuring and a steady shift from previous overheating.
Fixed-asset investment in Shanghai fell 6.9 percent annually to 154.5 billion yuan in the first five months. It recovered from a drop of 7.2 percent in the months through April as more investment was pumped into property development.
Exports in Shanghai increased 16.7 percent from a year earlier to US$17.1 billion in May, and imports advanced 22.2 percent to US$18.8 billion.
Analysts said such economic complexities will require policymakers to offer new incentives to stimulate the economy, but keep monetary tightening in place to curb inflation.
The city's consumer price index, the main gauge of inflation, expanded 5.3 percent last month from a year earlier. It swelled further from the pace of 5.1 percent in April and 4.7 percent in March, the Shanghai Statistics Bureau said.
But it looked better controlled compared to the nation's inflation rate, which hit a 34-month high of 5.5 percent in May.
Shanghai's dearer prices last month were bolstered by a 10.3 percent jump in food costs, among which rice rose 15.7 percent year-on-year, meat climbed 18.2 percent and edible oil rocketed 20.1 percent. Vegetable prices, however, dropped 6.1 percent due to the government's efforts in boosting supply and curtailing retail prices.
"Inflation, especially price jumps of daily necessities like food, will deal a severe blow to ordinary households and make them spend less in other fronts," said Li Maoyu, a Changjiang Securities Co analyst. "It requires policymakers to strengthen efforts and keep monetary policies tightened."
Industrial production up
Sheng Laiyun, a spokesman at the National Bureau of Statistics, said on Tuesday that governments at all levels should put control of prices at the top of their agenda.
Shanghai's industrial production last month edged up 5.5 percent from a year earlier to 261 billion yuan (US$40.2 billion). It was 9.7 percent in April and 12.4 percent in March.
The city's six key industries - information technology, vehicles, petrochemicals, fine steel, machinery equipment and biomedicine - reported a combined growth of 4 percent to 173.9 billion yuan in May.
"Such industries are more technology intensive, and need larger funds to support their growth. The monetary tightening may have affected them more seriously," Li said.
He suggested the government map out new policies to cushion unwanted blows to those industries, guaranteeing a proper pace for Shanghai's economic restructuring and a steady shift from previous overheating.
Fixed-asset investment in Shanghai fell 6.9 percent annually to 154.5 billion yuan in the first five months. It recovered from a drop of 7.2 percent in the months through April as more investment was pumped into property development.
Exports in Shanghai increased 16.7 percent from a year earlier to US$17.1 billion in May, and imports advanced 22.2 percent to US$18.8 billion.
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