ID :
209371
Mon, 09/26/2011 - 08:43
Auther :
Shortlink :
https://oananews.org//node/209371
The shortlink copeid
China's inflation to ease significantly in Q4: experts
By Kim Young-gyo
HONG KONG, Sept. 26 (Yonhap) -- China's inflationary pressures are likely to ease significantly in the fourth quarter of this year, experts said Monday, suggesting the Chinese authorities will not relax their monetary policy.
The country's consumer price index (CPI) expanded 6.2 percent last month from a year earlier, compared with a 36-month record high of 6.5 percent registered in July.
Citigroup Inc. said in a report that it believes Chinese inflation has already peaked, but will remain high in the fourth quarter.
The bank, however, said the CPI is expected to decline noticeably in the October-December period, as the country's financial tightening takes effect.
To curb the country's persistent inflation, the central People's Bank of China (PBOC) has raised the benchmark interest rate three times this year, while increasing the amount of money banks must keep in reserve a total of six times.
China is not expected to relax its monetary policy this year as the inflation rate for the whole of 2011 will almost certainly be higher than 5 percent, Citigroup predicted. The Chinese government's yearly target for this year is 4 percent.
Samsung Securities Co. also forecast that China's inflation will be distinctively lower in the last quarter of this year.
"While the country's property prices have started to stabilize, the prices of food, including pork, are continuing their upward trend before the major holiday season," it said.
China's seven-day National Day holiday, which starts on Oct. 1, usually fuels a spending spree among consumers.
"The Chinese government puts its priority on cutting inflation expectations in the country," Samsung Securities said.
China's tightening monetary policy appears to be yielding results in the country's housing markets with major Chinese cities beginning to see drops in property prices, it said, forecasting Beijing will want to see similar effects on food prices.
HONG KONG, Sept. 26 (Yonhap) -- China's inflationary pressures are likely to ease significantly in the fourth quarter of this year, experts said Monday, suggesting the Chinese authorities will not relax their monetary policy.
The country's consumer price index (CPI) expanded 6.2 percent last month from a year earlier, compared with a 36-month record high of 6.5 percent registered in July.
Citigroup Inc. said in a report that it believes Chinese inflation has already peaked, but will remain high in the fourth quarter.
The bank, however, said the CPI is expected to decline noticeably in the October-December period, as the country's financial tightening takes effect.
To curb the country's persistent inflation, the central People's Bank of China (PBOC) has raised the benchmark interest rate three times this year, while increasing the amount of money banks must keep in reserve a total of six times.
China is not expected to relax its monetary policy this year as the inflation rate for the whole of 2011 will almost certainly be higher than 5 percent, Citigroup predicted. The Chinese government's yearly target for this year is 4 percent.
Samsung Securities Co. also forecast that China's inflation will be distinctively lower in the last quarter of this year.
"While the country's property prices have started to stabilize, the prices of food, including pork, are continuing their upward trend before the major holiday season," it said.
China's seven-day National Day holiday, which starts on Oct. 1, usually fuels a spending spree among consumers.
"The Chinese government puts its priority on cutting inflation expectations in the country," Samsung Securities said.
China's tightening monetary policy appears to be yielding results in the country's housing markets with major Chinese cities beginning to see drops in property prices, it said, forecasting Beijing will want to see similar effects on food prices.
