Chinese inflation rises for fourth consecutive month
Official data today revealed Chinese consumer prices reached a 16-month high last month – the fourth straight monthly rise.
The National Bureau of Statistics said consumer price inflation rose to 2.7% in February compared with a year earlier and up from 1.5% in January.
Analysts had expected a rate of 2.3%.
As a result, some economists believe the Government will have to raise interest rates which have not moved for over two years.
Goldman Sachs economists Yu Song and Helen Qiao said it was now “vital for the government to take more decisive measures to tighten the economy to prevent overheating”.
In related news, it was revealed yesterday that China’s exports surged for the third consecutive month in February by 45.7% to $94.5 billion compared with a year ago and represented the fastest pace since March 2007.
China‘s economy, which is currently the world’s third largest, saw double digit growth in the fourth quarter of 2009 and the economy is now on target to surpass Japan and become the world’s no.2 economy.
Many analysts have described China’s recovery as “impressive” as Asia leads the way in the global recovery.
The economy grew by 8.7% in the 2009 year – which exceeded the Government’s initial expectations.