ID :
202535
Sun, 08/21/2011 - 10:36
Auther :
Shortlink :
https://oananews.org//node/202535
The shortlink copeid
China's high inflation to last 4-5 years: report
SEOUL, Aug. 21 (Yonhap) -- China's high inflation is expected to continue over the next four to five years as Beijing is committed to raising workers' wage levels, a report said Sunday.
"China's high inflation is likely to last until 2015 as the Beijing government is pushing to double the workers' wage level in an effort to ease an income gap," said the report by the Korea Chamber of Commerce and Industry.
China is seeking to increase the average salary of workers by 15 percent every year until 2015, which could catapult the world's second-largest economy into a "high-wage era," it said.
The report comes as China is grappling with soaring inflation. 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.
The report predicted China's persistent high inflation will have both positive and negative impacts on the South Korean economy.
The electronics, furniture and apparel sectors, which compete with cheap Chinese products in global markets, are expected to benefit from China's high inflation.
But China's monetary tightening will likely make a dent in South Korean exports to China, Seoul's largest trading partner, the report said, adding an expected rise in prices of Chinese imports is likely to put upward pressure on inflation.
China is the largest buyer of South Korean-made goods and has contributed to Seoul's sizable trade surplus in recent years. Their bilateral trade reached US$188.4 billion last year with the volume expected to top $300 billion in 2015.
South Korea also remains dogged by high inflation. The country's consumer prices rose 4.7 percent last month from a year earlier, quickening from the previous month's 4.4 percent gain.
"China's high inflation is likely to last until 2015 as the Beijing government is pushing to double the workers' wage level in an effort to ease an income gap," said the report by the Korea Chamber of Commerce and Industry.
China is seeking to increase the average salary of workers by 15 percent every year until 2015, which could catapult the world's second-largest economy into a "high-wage era," it said.
The report comes as China is grappling with soaring inflation. 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.
The report predicted China's persistent high inflation will have both positive and negative impacts on the South Korean economy.
The electronics, furniture and apparel sectors, which compete with cheap Chinese products in global markets, are expected to benefit from China's high inflation.
But China's monetary tightening will likely make a dent in South Korean exports to China, Seoul's largest trading partner, the report said, adding an expected rise in prices of Chinese imports is likely to put upward pressure on inflation.
China is the largest buyer of South Korean-made goods and has contributed to Seoul's sizable trade surplus in recent years. Their bilateral trade reached US$188.4 billion last year with the volume expected to top $300 billion in 2015.
South Korea also remains dogged by high inflation. The country's consumer prices rose 4.7 percent last month from a year earlier, quickening from the previous month's 4.4 percent gain.
