China’s inflation continues to accelerate

| August 11, 2010 | 0 Comments
China's inflation continues to accelerate

Chinese inflation continued to increase last month as devastating floods drove up the price of food as crops were wiped out.

According to the National Bureau of Statistics (NBS), the closely-watched consumer price index rose 3.3% in July against 2.9% in June.

A spokesperson for the Bureau said the rise was primarily due to “dramatic weather and serious floods”.

Sheng Laiyun of the bureau said China could keep prices “basically stable” for the year and meet the Government’s target of 3%.

“Generally speaking, there are more factors that will curb price rises than factors that will fuel price rises,” Sheng added.

In the meantime, industrial output slowed in July, rising 13.4% on an annual basis, against 13.7% in June.

There have been fears that the Chinese economy has been growing too quickly and analysts said there was a risk of overheating.

The Chinese economy grew by a staggering 11.9% in the first quarter and 10.3% in the March to June period.

However, a slowdown in manufacturing and the second quarter growth figures seem to be allaying fears, and a slowdown in growth is likely to continue for the remainder of the year, according to economists.

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