Chinese inflation continues to accelerate

| November 11, 2010 | 0 Comments
Chinese inflation continues to accelerate

Chinese inflation continued to increase in October, driven by higher food prices.

According to the National Bureau of Statistics (NBS), the closely-watched consumer price index rose 4.4% in October, up from 3.6% in September.

Not only was the rate higher than analysts had expected, it represented the fastest pace since September 2008 - at the start of the global financial crisis.

The rise came despite Government efforts to weaken prices and the Bureau said more needed to be done to control prices.

A number of measures have been introduced by the Government to control prices, such as hiking interest rates to prevent the economy from overheating.

This appeared to be working after recent figures showed the economy grew by 9.6% in the third quarter, down from 10.3% in the previous quarter.

In other news today, the Bureau revealed industrial output increased by an annualised 13.1% in October - marginally lower than the 13.3% increase reported in September.

Separately, figures revealed yesterday China’s trade surplus widened last month – to reach its second highest level this year, official data showed today.

The trade surplus grew to $27.1 billion (£17 billion) – far higher than September’s $16.9 billion but just slightly below the $28.7 billion reported in July.

The figures have triggered issues over trade imbalances and currency manipulation and the two issues are likely to be high on the agenda at today’s G20 meeting in South Korea.

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