China inflation rises while inflation grows

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Recent analysis by a group of 19 international experts suggests that Chinese inflation will slow slightly this year as compared to the last, but will remain above the government’s comfort level of 4%. Glenn Maguire, an economist at Societe Generale in Hong Kong says that it will probably plateau at about 5.5%.  China’s economy is still growing rapidly, but will slow from its peak last year at 10.3% to 9.5% this year.

The strength of China’s economy during the global downturn is due to the increased employment opportunities available and broad-based wage gains, which increase the disposable income of consumers.  Prices continue to go up, so the government as made fighting inflation a priority.  They have raised interest rates and upped the reserve ratio amount required by banks, and will probably implement similar policies again this year.

 

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Reading Time: 1 minute

Recent analysis by a group of 19 international experts suggests that Chinese inflation will slow slightly this year as compared to the last, but will remain above the government’s comfort level of 4%. Glenn Maguire, an economist at Societe Generale in Hong Kong says that it will probably plateau at about 5.5%.  China’s economy is still growing rapidly, but will slow from its peak last year at 10.3% to 9.5% this year.

Reading Time: 1 minute

Recent analysis by a group of 19 international experts suggests that Chinese inflation will slow slightly this year as compared to the last, but will remain above the government’s comfort level of 4%. Glenn Maguire, an economist at Societe Generale in Hong Kong says that it will probably plateau at about 5.5%.  China’s economy is still growing rapidly, but will slow from its peak last year at 10.3% to 9.5% this year.

The strength of China’s economy during the global downturn is due to the increased employment opportunities available and broad-based wage gains, which increase the disposable income of consumers.  Prices continue to go up, so the government as made fighting inflation a priority.  They have raised interest rates and upped the reserve ratio amount required by banks, and will probably implement similar policies again this year.

 

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid