Chinese inflation holds steady at 4.9%

| March 11, 2011 | 0 Comments
Chinese inflation holds steady at 4.9%

China’s National Bureau of Statistics (NBS) has today revealed the consumer price index rose 4.9% in February on an annual basis – the same figure as January.

However, inflation is still well in excess of the 3% target set by the Government and was higher than analysts forecasts of 4.7%.

The Government recently announced measures to deal with double-digit food price inflation and the measures appear to be working as the rate held steady.

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.

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

Last week, Premier Wen Jiabao said reining in prices was the Government’s “top priority”.

Inflationary pressures are rife in Asia and in the last few weeks, central banks in Indonesia, Vietnam, Thailand and India have all increased interest rates.

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