Latest News:  


Rebound in inflation expected this year

By Fang Yunyu (Global Times)

08:18, February 27, 2013

China is expected to see a rebound in inflation this year, experts and insiders told the Global Times Tuesday.

According to data released by the National Bureau of Statistics (NBS), the consumer price index (CPI), a main gauge of inflation, rose 2.6 percent year-on-year in 2012, and it slowed to 2 percent in January.

"But we forecast that this year China will experience a new round of inflation, with the CPI staying at more than 3 percent," Lu Ting, a Hong Kong-based economist at Bank of America-Merrill Lynch, told the Global Times Tuesday, noting that the economic recovery will push a rise in prices of raw materials.

China's economic growth reached 7.8 percent for 2012, the slowest pace since 1999. But Ma Jiantang, head of the NBS, said earlier this year that he expected the economic rebound that began in the fourth quarter of 2012 would extend throughout 2013.

The World Bank also raised its forecast for China's 2013 economic growth to 8.4 percent, thanks to the government's fiscal stimulus plans and investment projects.

"Rising salaries will be another factor behind the expected rebound in inflation," said Lu, noting that food prices are likely to rise as well, which will also push up the CPI.

Moreover, effective from Monday, the National Development and Reform Commission (NDRC) hiked the retail prices of gasoline by 300 yuan ($48) per ton and diesel by 290 yuan per ton, although crude oil prices have recently dropped in the international market.

Analysts expect that the fuel surcharge fees for domestic flights will also be raised by 10 yuan next month.

"Those price increases will surely add to inflationary pressure in China," Wang Xianqing, director of the Research Institute of the Circulation Economy at Guangdong University of Business Studies, told the Global Times Tuesday.

Wang also said the central government should change its fuel pricing mechanism, noting that on the same day the NDRC raised fuel prices, Taiwan decided to cut its fuel prices.

【1】 【2】

We recommend:

Keeping the brand full of beans

Companies struggle to find, keep workers

Shares crumble as result of housing curbs

Liquor makers fined 449m yuan for price monopoly

Tougher fuel standards take form

Movie-themed fortunes 'never guaranteed'

Email|Print|Comments(Editor:LiangJun、Li Zhenyu)

Leave your comment0 comments

  1. Name


Selections for you

  1. Seaplanes of North Sea Fleet in training

  2. Highlights of 'Xuzhou' guided missile frigate

  3. The world in photos (2013.02.17-02.23)

  4. Chilly run gets blood pumping

  5. China's weekly story (2013.2.16-2.22)

  6. 'Chinese style' during Spring Festival

  7. One Hundred Years of Oscar

  8. Review Spring Festival celebrations

  9. IKEA stops selling meatballs for horsemeat

  10. Output growth hits 4-month low, says HSBC

Most Popular


  1. Cross-Straits relations 'will be boosted'
  2. China 'firmly supports' BRICS
  3. Water quality a concern
  4. Kerry aims high in maiden foreign trip
  5. Open communication for Peninsula peace
  6. Spring Festival offers window into China
  7. Fatter red envelopes miss point of tradition
  8. Opportunities amid challenges
  9. Children deaths lead to calls for better guardianship
  10. New CPC leadership's first 100 ruling days inspiring

What’s happening in China

China's 'leftover women' phenomenon arouses heated debate in West

  1. Taiwan's unemployment rate lowest in 7 months
  2. Car plate lottery success rate reaches new low
  3. Four killed in E China grocery store fire
  4. Minibus plunges off cliff in SW China
  5. Yunnan investing in children