China Inflation accelerated in May, reaching a high of 19 months but slowing growth in industrial production and capital expenditure reduced to some analysts, the risk of overheating the third world economy. Other economists argue instead that China will have no choice but to raise interest rates and let the yuan appreciate to prevent a runaway economy.
The statements of officials of the Office for National Statistics suggest that Chinese authorities are currently no hurry to tighten monetary policy, partly because the European Union, the largest export market of China, has financial problems. www.stock-market-today.cc
"With the debt crisis in the euro area, prices of commodities have declined and this will help to some extent China to reduce inflationary pressures," said Sheng Laiyun, spokesman for the National Bureau of Statistics, at a press conference. Consumer prices rose 3.1% year on year in May, against 3.0% expected and after an increase of 2.8% in April, confirming information reported by Reuters on Wednesday. stock-market-today.cc
China inflation well above the official target of 3.0% annual rate. Sheng Laiyun however, indicated that this increase was due to 1.8 percentage points to a low comparison base. In addition, prices of clothing, appliances and vegetables - a major factor of China inflation - are all declining, which should allow Beijing to achieve its inflation target throughout the year. "The trend of China inflation is towards a reversal of price pressures in the future," said the spokesman. copyright stock market today
The markets remained indifferent to the statistics that had been widely anticipated. Split views on China inflation prospects Among other figures released Friday, the growth of industrial production annual rate slowed to 16.5% in May against 17.8% in April.China inflation is more serious than expected.
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