ID :
204312
Tue, 08/30/2011 - 08:42
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https://oananews.org//node/204312
The shortlink copeid
China unlikely to meet inflation target this year
By Kim Young-gyo
HONG KONG, Aug. 30 (Yonhap) -- China is not likely to hit its inflation target this year as the world's No. 2 economy continues to face persistently rising consumer prices, experts said Tuesday.
China's top economic planner National Development and Reform Commission said it could be "difficult" for China to meet its 2011 inflation target, largely due to the imported inflation resulting from high global commodity prices.
"The loose monetary policies in the developed countries will keep the global commodity prices high," the commission said in a statement posted on its Web site. "The impact from imported inflation has not eased."
The commission earlier lifted its consumer price inflation (CPI) target for 2011 to 4 percent after the country failed to meet the 3 percent target last year.
China's CPI rose to a 36-month high of 6.5 percent in July, driven mostly by food prices, which jumped 14.8 percent from a year earlier.
In the first seven months of this year, the index increased to 5.5 percent for the first seven months this year despite the country's tightening moves.
In a battle against soaring inflation, the central People's Bank of China has raised the benchmark interest rate three times this year while increasing the amount of money banks must keep in reserves six times.
Meanwhile, market watchers expected that China's consumer prices for August will likely ease, but will remain above 6 percent.
Mizuho Securities Asia predicted that the CPI may ease to 6.2 percent in August, citing slower growth in food prices.
Shen Jianguang, Greater China chief economist at Mizuho Securities Asia, noted the monthly gains of grain, chicken and aquatic products were all lower than that in July, while prices of vegetables and fruits posted dramatic declines. Only egg prices jumped in August, he said.
Zhu Jianfang, chief economist at CITIC Securities, said China's inflation pressure may gradually decrease over the rest of this year as consumer prices may have peaked in July. He expects the full-year CPI growth to be contained at around 5 percent.
ygkim@yna.co.kr
HONG KONG, Aug. 30 (Yonhap) -- China is not likely to hit its inflation target this year as the world's No. 2 economy continues to face persistently rising consumer prices, experts said Tuesday.
China's top economic planner National Development and Reform Commission said it could be "difficult" for China to meet its 2011 inflation target, largely due to the imported inflation resulting from high global commodity prices.
"The loose monetary policies in the developed countries will keep the global commodity prices high," the commission said in a statement posted on its Web site. "The impact from imported inflation has not eased."
The commission earlier lifted its consumer price inflation (CPI) target for 2011 to 4 percent after the country failed to meet the 3 percent target last year.
China's CPI rose to a 36-month high of 6.5 percent in July, driven mostly by food prices, which jumped 14.8 percent from a year earlier.
In the first seven months of this year, the index increased to 5.5 percent for the first seven months this year despite the country's tightening moves.
In a battle against soaring inflation, the central People's Bank of China has raised the benchmark interest rate three times this year while increasing the amount of money banks must keep in reserves six times.
Meanwhile, market watchers expected that China's consumer prices for August will likely ease, but will remain above 6 percent.
Mizuho Securities Asia predicted that the CPI may ease to 6.2 percent in August, citing slower growth in food prices.
Shen Jianguang, Greater China chief economist at Mizuho Securities Asia, noted the monthly gains of grain, chicken and aquatic products were all lower than that in July, while prices of vegetables and fruits posted dramatic declines. Only egg prices jumped in August, he said.
Zhu Jianfang, chief economist at CITIC Securities, said China's inflation pressure may gradually decrease over the rest of this year as consumer prices may have peaked in July. He expects the full-year CPI growth to be contained at around 5 percent.
ygkim@yna.co.kr
