Foreign Media: China inflation pressures has not been significantly reduced
China's February consumer price index (CPI) rose by 3.2%, which is the lowest in the past 20 months and slightly below the consensus forecast of 3.4%.
According to a report in United Kingdom Financial Times website, in February the reduced inflation figure shows that the price pressure has been eased, so thatChinamay relax credit again. But the data seems to be not rather convincing. What is worthy of mentioning is that in 2011 the Chinese lunar nee year was in February, and this year it is before and after January. As Citigroup analysts said, in the past ten years, inflation rate would definitely fall in the month of the lunar new year .
In addition, the decrease of industrial producer price indices (PPI) also brings  relief to people, but this does not mean thatChinacan begin to relax credit. As what has been pointed out by an economist in the Royal Bank ofScotland, too much care about these numbers would be somewhat misleading. In other words several data along is far from enough on which reasonable conclusion can be made.
In the report, it was said that though the latest data showed that the trajectory inflation is better than expected in the near future, there were still skeptical opinions about the prospects for extensive monetary easing stance. Experience in recent months has shown that inflation is not smooth and it is likely to repeat itself as the price pressures in the months ahead.
From the long run, inflation could well be eased, but the signs at the moment have not yet appeared. Last year CPI rise had been enough to raise fears of social unrest, thus becoming part of the reason why monetary tightening is delayed.
Voice of America radio website quoted ANZ Director of greater China economic research Ligang Liu's view that, at least for now, China's CPI inflation fell owing mainly to base effects, that is to say, price levels were too high in the same period last year. From the ring, the inflationary pressures have not been significantly reduced.
In addition, Ligang Liu believes that due to the recent sharp increase in international crude oil prices, andChinaplans to pursue reform energy prices in the near future, coupled with rising wage pressures having increased. therefore, price data for the first two months of this year alone is not sufficient to prove that inflationary pressure has been eased.
According to a report in United Kingdom Financial Times website, in February the reduced inflation figure shows that the price pressure has been eased, so thatChinamay relax credit again. But the data seems to be not rather convincing. What is worthy of mentioning is that in 2011 the Chinese lunar nee year was in February, and this year it is before and after January. As Citigroup analysts said, in the past ten years, inflation rate would definitely fall in the month of the lunar new year .
In addition, the decrease of industrial producer price indices (PPI) also brings  relief to people, but this does not mean thatChinacan begin to relax credit. As what has been pointed out by an economist in the Royal Bank ofScotland, too much care about these numbers would be somewhat misleading. In other words several data along is far from enough on which reasonable conclusion can be made.
In the report, it was said that though the latest data showed that the trajectory inflation is better than expected in the near future, there were still skeptical opinions about the prospects for extensive monetary easing stance. Experience in recent months has shown that inflation is not smooth and it is likely to repeat itself as the price pressures in the months ahead.
From the long run, inflation could well be eased, but the signs at the moment have not yet appeared. Last year CPI rise had been enough to raise fears of social unrest, thus becoming part of the reason why monetary tightening is delayed.
Voice of America radio website quoted ANZ Director of greater China economic research Ligang Liu's view that, at least for now, China's CPI inflation fell owing mainly to base effects, that is to say, price levels were too high in the same period last year. From the ring, the inflationary pressures have not been significantly reduced.
In addition, Ligang Liu believes that due to the recent sharp increase in international crude oil prices, andChinaplans to pursue reform energy prices in the near future, coupled with rising wage pressures having increased. therefore, price data for the first two months of this year alone is not sufficient to prove that inflationary pressure has been eased.