Latest News:  
Beijing   Sunny/Cloudy    6 / -3   City Forecast

People's Daily Online>>China Business

Cheaper food costs likely to ease inflation

By Wang Yanlin (Shanghai Daily)

09:47, March 08, 2012

THE drop in food prices may see China's inflation in February weaken sharply to about 3.2 percent, which may end a two-year period of negative de facto interest rates, some economists said.

The easing inflationary pressure will create more room to unveil fiscal and monetary stimulus measures but implementation will be gradual as the government will continue to control price rises as a priority, they said.

"Falling food costs after the Spring Festival have helped ease inflation," said Tang Jianwei, an economist at the Bank of Communications. He estimated the inflation rate for February at 3-3.4 percent.

The National Bureau of Statistics is set to release the key economic data for February tomorrow.

The Consumer Price Index unexpectedly rose 4.5 percent to a three-month high in January because of higher food costs.

Email|Print|Comments(Editor:雪萌)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Guangzhou beats Jeonbuk 5-1 in AFC Champions League

  2. Group wedding held to mark Int'l Women's Day in Quanzhou, Fujian

  3. A journey in North Tibet: Potala Palace

  4. North Korea, a beautiful, bright country

Most Popular

Opinions

  1. Chinese products bring benefits to U.S. consumers
  2. Is international 'hot money' flowing into China?
  3. China's economy to roar ahead amid global woes
  4. U.S. solution to Syria issue doomed to failure
  5. Trust key to stability on Korean Peninsula
  6. Public will increasingly swaying diplomatic policies
  7. Political dialogue is right solution to Syrian crisis
  8. West's pressure no sway on China's defense budget
  9. Manila returns to usual games of cat and mouse
  10. How should China cope with US return to Asia?

What's happening in China

Beijing to switch from coal to gas to go green

  1. Low-priced tomb offer shunned
  2. Early start on PM2.5 monitoring
  3. Taboo subject takes its toll on women
  4. Court accepts Jordan trademark infringement suit
  5. Poor patients with critical illnesses to get gov't aid

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai