| Official: CPI to rise, still under control |
| Thursday,August 16,2007 Posted: 14:28 BJT(0628 GMT) |
| From:www.chinaview.cn Article type:Reproduced |
A Chinese national research center said on Wednesday that the consumer price index (CPI) is still within government control although it will "keep rising at a moderate rate for a relatively long time". Recent price hikes signaled moderate inflation only, in which the prices rise steadily at a relatively low rate. Inflation was not high nor out of control, said the State Information Center (SIC). SIC research into the CPI changes in the past two decades suggested that a growth rate of five percent was the threshold for moderate inflation in China, well above the accumulative 3.5 percent CPI growth in the first half. Although the threshold was exceeded by the 5.6-percent growth in July, inflationary pressure was not severe compared with similar accelerated price hikes in 2004, in which the CPI rose by at least five percent for four straight months from June to September. If accelerated CPI growth occurred, the government could still effectively rein the prices through policies such as the suspension of government-controlled price rises, said the SIC. The SIC attributed the pressure for further prices hikes to future growth in food and housing prices. Food price increases would likely last sometime because of tight domestic supply market and soaring international food prices, which rose 20 percent in the first four months, SIC quoted from a World Bank report in May. Housing prices, accounting for 13.2 percent of the CPI, had increased by four to five percent since 2005 because of soaring demand. Large salary increases for government workers last year, together with the booming stock and real estate markets, boosted domestic demand, which would drive up prices overall, the SIC said. The SIC forecast the CPI growth at around four percent in 2007, higher than the three-percent goal set at the beginning of the year. |
| (Source: English Site of Cyprus) |
 | EU develops new intelligence system to identify public health threats 2007-08-14 19:20 |
| Sales in China's GPS market to exceed 1.5 mln sets in 2007 2007-08-14 19:10 |
| China's heavy industry continues to increase power consumption 2007-08-14 19:05 |
| China's stock market still on the up, major index close to 5,000 points 2007-08-14 19:01 |
| China's retail sales up 16.4% in July 2007-08-14 18:56 |
| China opens military industry to private businesses 2007-08-07 15:55 |
| China Shipbuilding becomes costliest stock 2007-08-07 15:50 |
| Official: China's economy may grow slightly slower in second half 2007-08-07 15:43 |
| China puts new curbs on processing trade 2007-07-24 16:07 |
| New progress in China's protection of intellectual property right 2005-04-27 18:38 |
All articles marked with "Article type: Original" posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of "Source: Ministry of Commerce Website".
All articles posted on this website or its sub-sites marked with "Article type: reproduced" or "Article type: translated" and "Article type: redistributed" come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use.
