China's GDP grows 11.9% in Q1, fueling overheating fears (3)

20:00, April 15, 2010      

Email | Print | Subscribe | Comments | Forum 

Li attributed the rise in CPI to the relatively low comparison basis of the first quarter of 2009 and the freezing winter, which brought dramatic rises in food prices.

Li also noted that other factors -- rising international commodity prices, domestic producer prices and industrial costs -- had also started to push up the CPI.

Zhu Baoliang, chief economist at the State Information Center, said the government might find it difficult to achieve the 3-percent limit, but it could easily hold the inflation rate within 4 percent this year.

Consumer prices were growing at a moderate level, but there was still possibility of further inflation, due to excessive money supply, as well as the skyrocketing property prices and the prolonged drought in south China, Zhu said.

But as the government was set to gradually scale back money supply, inflation pressure would eventually ease, he said.

Jing Ulrich, chairman of China Equities and Commodities of JP Morgan Chase, agreed that inflation was expected to rise before peaking around mid-year.

Considering the upward trend in consumer prices and the recovery in exports, China's central bank might begin to raise interest rates in the second quarter to keep inflation in check, she said, adding J.P. Morgan Chase expected the PBOC to raise interest rates three times in 2010.

However, she said Tuesday's price hike in fuel products had indicated policy makers' confidence in inflation control and "a measure of comfort with China's near-term inflation outlook."

She forecast that CPI growth would stand at 3.2 percent for 2010.

Source: Xinhua
【1】 【2】 【3】

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion