Chinese inflation rises to 4.9% in January

| February 15, 2011 | 0 Comments
Chinese inflation rises to 4.9% in January

China’s National Bureau of Statistics (NBS) has revealed the consumer price index rose 4.9% in January on an annual basis - up from December’s 4.6%.

Inflation is still well in excess of the 3% target set by the Government but was in line with analysts forecasts.

The Government recently announced measures to deal with double-digit food price inflation.

In addition, the People’s Bank of China has already lifted interest rates three times in four months in order to curb high inflation.

Food costs are the primary cause of high inflation – up 10.3% on year.

Inflation fears are always a concern to Chinese officials due to the potential for price rises to trigger civil unrest.

In related news, it was revealed yesterday China has now officially become the world’s second largest economy – taking over from Japan, which slides into the third place.

At the end of 2010, Japan’s economy was worth $5.474 trillion (£3.414 trillion), while the Chinese economy was worth $5.8 trillion at the end of last year.

If the current pace of growth continues in China, analysts believe it will become the world’s largest economy in about 10-15 years time – knocking the US off the top spot.

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