BEIJING, Nov. 11 (Xinhua) -- China's consumer inflation rose at a slower annual rate of 4 percent in October, giving the government more room to ease macroeconomic controls to stimulate the economy.
Rises in consumer price index (CPI), the main gauge of inflation, slowed for the six straight months. The figure, compared with 4.6 percent in September, 4.9 percent in August, 6.3percent in July, 7.1 percent in June, and a nearly 12-year-high of8.7 percent in February, was broadly in line with most forecasts.
The CPI was 6.7 percent in the year to October, down from 7.0 percent in the first three quarters, the National Bureau of Statistics (NBS) announced on Tuesday.
The price of food, the main driver behind inflation since last year, climbed 8.5 percent last month from a year earlier, down from 9.7 percent in September. Prices of non-food items rose 1.6 percent.
"The easing in inflation gives the government further room to adjust policies to spur the economy while without worrying about inflation," Peng Xingyun, a researcher at the Institute of Finance and Banking under the Chinese Academy of Social Science (CASS).
There was little chance inflation could rebound in the short term and it could only rebound as early as in the second half of next year, Peng said, adding "Governments worldwide now focus on tackling the financial crisis and spurring economic growth."
Producer inflation also eased to 6.6 percent in October because of declines in commodities prices and the lag effect of earlier tightening measures, the NBS said on Monday.
China's economy slowed sharply in the third quarter because of slowing export and investment growth. The gross domestic product grew at an annualized rate of 9 percent in the third quarter, down from 10.1 percent in the second quarter and 10.6 percent in the first quarter.
Amid growing concerns over a sharp economic slowdown, the State Council, or Cabinet, on Sunday unveiled a massive stimulus package worth 4 trillion yuan (570 billion U.S. dollars) and said it would adopt "active" fiscal and "moderately loose" monetary policies.
In addition, the People's Bank of China, or central bank, has cut borrowing costs three times over the past two months.
China plans 10 major steps to spark
growth as fiscal, monetary policies ease
BEIJING, Nov. 9 (Xinhua) -- China will take 10 major steps
to stimulate domestic consumption and growth as it turns to an "active" fiscal
policy and "moderately easy" monetary policy, an executive meeting of the State
Council said on Sunday. Full story
China's 4 trillion yuan stimulus to
boost economy, domestic demand
BEIJING, Nov. 9 (Xinhua) -- China said on Sunday it will
loosen credit conditions, cut taxes and embark on a massive infrastructure
spending program in a wide-ranging effort to offset adverse global economic
conditions by boosting domestic demand.
This is a shift long advocated by analysts of the Chinese
economy and by some within the government. It comes amid indications that
economic growth, exports and various industries are slowing. Full story
China adopts "active" fiscal,
"moderately easy" monetary policies to boost economy
BEIJING, Nov. 9 (Xinhua) -- China has decided to adopt
active fiscal policy and moderately easy monetary policies to boost fast but
steady economic growth by expanding domestic demand, according to an executive
meeting of the State Council on Sunday.
It is estimated that investment into infrastructure,
social welfare and other key sectors will amount to four trillion yuan by the
end of 2010. Full story
China's VAT reform to shed corporate
tax burden by 120 bln yuan
BEIJING, Nov. 9 (Xinhua)-- China announced on Sunday it
would spread a reform of its value-added tax regime to all industries
nationwide, which could cut the tax burden on enterprises by 120 billion yuan
(about 17.6 billion U.S. dollars).
The reform would help encourage technological upgrading at
Chinese companies, said an executive meeting of the State Council, which also
put forward a stimulus package of 4 trillion yuan to be spent by the end of 2010
to expand domestic demand. Full story
China PPI falls to 6.6 % in
October
BEIJING, Nov. 10 (Xinhua) -- China's producer price index
(PPI), rose at a slower annual rate of 6.6 percent in October, the National
Bureau of Statistics (NBS) announced on Monday.
The rise in factory gate prices was down from 9.1 percent
in September and the 12-year high of 10.1 percent in August. Full story
