¡¡BEIJING, March 10 (Xinhua) -- China's producer price index, a key inflation indicator, rose 6.6 percent in February from a year earlier, the fastest in more than three years, the National Bureau of Statistics said on Monday.
The index, which measures the cost of goods when they leave the factory, was announced amid widespread expectations that China's inflation rate will reach another 11-year high after gaining 7.1 percent in January.
The factory-gate inflation in February was only next to the figure in December 2004 when it stood at 7.1 percent, deepening concerns over rising inflationary pressure and more tightening moves by the government.
Crude oil prices soared 37.5 percent in February over the same month last year, compared with a 29.9-percent rise in January and 22.6 percent in November. The overall costs of raw materials, fuel and power surged 9.7 percent.
Rising oil prices were the main impetus driving up the index, said Xu Lianzhong, an official with the National Development and Reform Commission. The severe winter weather had also played a role.
"If international oil prices continue to rise, China's producer price index will not decline in the short term," said Xu Guangjian, a researcher with Renmin University of China.
The national statistics authority is scheduled to release February's consumer price index, the country's most important gauge of inflation, on Tuesday.
Consumer prices rose 7.1 percent in January, the highest in more than 11 years, mainly due to rising food costs and shortages of pork and other items.
A Bank of China report forecast that the February figure would hit 8.3 percent. Food prices would rise 6 to 7 percent month-on-month and 22 to 23 percent year-on-year.
Xie Fuzhan, head of the statistics authority, acknowledged that the inflation rate would be even higher in February because of the severe winter weather that damaged crops, cut power supplies and disrupted traffic in eastern and southern China.
Xie, also a member of the central bank monetary policy committee, said the government was yet to discuss further interest rate hikes in the near future, but the tight policy would not change.
The Bank of China forecast in a separate report that China was likely to raise the interest rates once or twice in the first half of the year.
China is in the midst of a fight against rising inflation. The central bank had taken a series of measures, such as raising the reserve requirement ratio 11 times and the interest rates six times since last year.
Premier Wen Jiabao said last week that the government would strive to keep this year's inflation rate around 4.8 percent.
Last year, the index rose 4.8 percent year-on-year, the highest since 1997 and well above the 3 percent target.
President Hu stresses stable food
prices
BEIJING, March 9 (Xinhua) -- Chinese President Hu Jintao
urged local governments to ensure stable food prices and supply of major farm
produce on Sunday.
Hu's remarks came after the country's consumer price index
(CPI) scored 4.8 percent last year and an 11-year-high of 7.1 percent in January
this year, triggering inflation fears. Full story
China's PPI hits 3-year
high
BEIJING, Jan. 18 (Xinhua) -- Surging crude oil prices
pushed up China's producer price index (PPI) by 6.1 percent in January over the
same month last year, the largest monthly rise in three years, the National
Bureau of Statistics (NBS) said on Monday.
The index, which measures the cost of goods when they
leave the factory, leapt from 2.4 percent in August last year to the latest 6.1 percent in five months,
indicating an accelerating price pressure. Full story
China's CPI rises 4.8 percent in
2007
BEIJING, Jan. 24 (Xinhua) -- Consumer prices in China rose
at their fastest pace in a decade last year, with the consumer price index (CPI)
increasing 4.8 percent, an increase that might lead to further tightening
measures by the government.
Last December alone witnessed a CPI increase of 6.5
percent year on year, lower than the record 6.9 percent rise in November but the
same as the figures in August and October. Full story
