Chinese inflation eases in April
Inflation in the world’s second largest economy cooled last month as food prices eased slightly.
Consumer inflation fell to 5.3% in April on an annual basis, down from March’s 3-year high of 5.4%.
Today’s figures suggest attempts by the Government to rein in prices are having a positive impact.
There have been fears of the Chinese economy overheating as inflation and property prices soar but growth now appears to be easing slightly.
However, food prices (the primary factor behind stubbornly high inflation) remain high, rising at an annual rate of 11.2% – however, this fell from April’s high of 11.7%.
Meanwhile, the inflation rate is expected to fall to just above the 4% mark by the end of 2011, due to measures taken by the country’s central bank.
Since October, interest rates have been lifted four times. Many other central banks in Asia have adopted the same measures due to stubbornly high inflation.