ID :
201819
Wed, 08/17/2011 - 09:56
Auther :
Shortlink :
https://oananews.org//node/201819
The shortlink copeid
China's inflation to hover above 6 pct in Q3: think tank
HONG KONG, Aug. 17 (Yonhap) -- China's consumer prices will likely grow more than 6 percent in the third quarter, a think tank said Wednesday, highlighting that the country is facing persistent inflationary pressure.
The State Information Center, a unit under China's National Development and Reform Commission, said the country's consumer price index (CPI) may expand 6.2 percent from a year earlier in the July-September period.
In July, China's consumer prices soared to 6.5 percent from a year earlier, up from a 5.5 percent gain in May. The figure was the sharpest gain in 37 months despite the Chinese government's continuous monetary tightening.
China's consumer inflation has been on the uptrend despite the slowing growth of the world's No. 2 economy.
China's economy is expected to grow around 9.2 percent in the third quarter from a year ago, compared to 9.5 percent in the second quarter and to 9.7 percent in the first quarter, the State Information Center said. The country's gross domestic product (GDP) rose 10.3 percent last year.
The government-run think tank said taming inflation remains to be a top priority for Chinese policymakers.
"Soaring prices will curtail economic growth and China has to maintain tightening measures to tame inflation," it said.
While food prices in China may decline due to government efforts to boost supply, risks of imported inflation are rising as the United States may further relax its monetary policies, the center added.
The U.S. Federal Reserve said last week it will keep "exceptionally low" interest rates in place until at least mid-2013 as a way to continue to prop up the economic recovery.
The federal funds rate is the U.S. central bank's key tool to spur the economy and a low rate is thought to encourage spending by making it cheaper to borrow money.
The National Development and Reform Commission, China's top economic planning agency, said in a statement that inflation in China may have peaked in July, but the U.S. may unveil another round of monetary stimulus measures, which is likely to trigger new inflationary risks for the country.
ygkim@yna.co.kr
The State Information Center, a unit under China's National Development and Reform Commission, said the country's consumer price index (CPI) may expand 6.2 percent from a year earlier in the July-September period.
In July, China's consumer prices soared to 6.5 percent from a year earlier, up from a 5.5 percent gain in May. The figure was the sharpest gain in 37 months despite the Chinese government's continuous monetary tightening.
China's consumer inflation has been on the uptrend despite the slowing growth of the world's No. 2 economy.
China's economy is expected to grow around 9.2 percent in the third quarter from a year ago, compared to 9.5 percent in the second quarter and to 9.7 percent in the first quarter, the State Information Center said. The country's gross domestic product (GDP) rose 10.3 percent last year.
The government-run think tank said taming inflation remains to be a top priority for Chinese policymakers.
"Soaring prices will curtail economic growth and China has to maintain tightening measures to tame inflation," it said.
While food prices in China may decline due to government efforts to boost supply, risks of imported inflation are rising as the United States may further relax its monetary policies, the center added.
The U.S. Federal Reserve said last week it will keep "exceptionally low" interest rates in place until at least mid-2013 as a way to continue to prop up the economic recovery.
The federal funds rate is the U.S. central bank's key tool to spur the economy and a low rate is thought to encourage spending by making it cheaper to borrow money.
The National Development and Reform Commission, China's top economic planning agency, said in a statement that inflation in China may have peaked in July, but the U.S. may unveil another round of monetary stimulus measures, which is likely to trigger new inflationary risks for the country.
ygkim@yna.co.kr
