Chinese inflation continues to rise

| December 13, 2010 | 1 Comment
Chinese inflation continues to rise

China’s National Bureau of Statistics (NBS) has revealed the consumer price index rose 5.1% in November on an annual basis - much faster than expected.

It represented the fastest increase since July 2008 - when inflation exceeded the 6% mark.

Inflation is still well in excess of the 3% target set by the Government.

Last month, the Government announced measures to deal with double-digit food price inflation. It has already lifted interest rates – the first time since 2007 such a move was made in order to curb high inflation.

Many economists are now predicting that the People’s Bank of China will lift rates further in the short-term.

Food costs are the primary cause of high inflation - up 11.7% on year.

In other news, industrial output from China’s factories rose 13.3% on an annual basis while retail sales, a key measure of consumer spending, soared 18.7% on year in November compared with 18.6% the previous month.

Finally, exports grew strong than expected last month - up 34.9% on an annual basis.

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  1. Jay Banks says:

    Convenient summary Kay,

    this continuation is presupposed by many economic experts. China presents the hugest market which offers a lot of possibilities for international imports and of course exports. The unpredictable process will continue through an industrial output. There is created a prize bubble which rise up an inflation.

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