CPI within acceptable range: Economist

11:16, March 12, 2010      

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According to the data released by the National Bureau of Statistics (NBS), CPI rose 2.7 percent year-on-year in February, much higher than the growth rate of 1.5 percent in January.

The Spring Festival and other structural factors contributed to the CPI rise in February, aided by growing resident's disposable income. Currently, China's CPI was standing within the acceptable range, and inflation did not aggravate, said Zuo Xiaolei, chief economist of China Galaxy Securities Limited, Thursday in Beijing.

The data shows that CPI in February increased 2.7 percent, whose growth rate expanded 1.2 percentage points compared with the previous month. Amid it, CPI in urban area and rural area rose 2.6 percent and 2.9 percent respectively; food prices surged 6.2 percent, and non-food prices was up 1.0 percent; consumer goods pricing increased 3.0 percent, service items pricing jumped 1.7 percent.

Zuo pointed out that prices on food prices, cigarette and wine saw a high hike thanks to the Chinese Lunar New Year in February. Although under the context of the severe international financial storm, China's CPI in January, 2009(Chinese New Year month in 2009) maintained the positive growth. However, CPI turned to the growth rate of -1.6 percent in February after the festival last year, hence, the Spring Festival factor had great impact on commodity prices.

In addition, tail-raising factor still could not be omitted. CPI in Feb. surged 1.2 percent compared with January, 2010, which did not hit the high level, so tail-raising factor played a significant role with the CPI in Feb. last year showing negative, Zuo added.

As to the most concerned inflation issue, Zuo stressed that the inflation did not deteriorate. Comparing with the income growth of 8.5 percent, 9.3 percent in rural and urban areas respectively, commodity pricing level still remained within the affordable scope.

By People's Daily Online
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