China's inflation within "comfortable range"
                 English.news.cn | 2014-08-09 17:09:55 | Editor: Tang Danlu

Consumers select food at a market in Shenyang, capital of northeast China's Liaoning Province, Aug. 9, 2014. China's consumer price index (CPI), a main gauge of inflation, grew 2.3 percent year on year in July, in the same pace with a month earlier, official data showed Saturday. (Xinhua/Yang Qing)

BEIJING, Aug. 9 (Xinhua) -- China's consumer price index (CPI), a main gauge of inflation, grew 2.3 percent year on year in July, the same pace as a month earlier, official data showed on Saturday.

The growth rate was also the same as that of the first half of this year, showing stable pricing in the world's second-largest economy, according to the National Bureau of Statistics (NBS).

In July, inflation grew 2.4 percent in urban areas and 2.1 percent in rural areas, NBS data showed.

Food prices, which account for about one third of the weighting in the CPI calculation, grew 3.6 percent year on year in July, down from 3.7 percent in June.

The Chinese government aims to hold consumer inflation at around 3.5 percent this year.

Yang Hongxu, deputy head of the Shanghai-based E-House China R&D Institute, said the July inflation was "in a very comfortable range."

"Residents will feel the pain if inflation goes too high, but the economy and companies will suffer if it is too low. CPI at about 2 percent is an ideal level," Yang said.

The cooling housing market would also be conducive to ensuring steady consumer prices, he added.

Residential prices, which cover those for rents, utilities and building materials, grew by 2 percent year on year amid a weakening property sector.

NBS data showed that growth in property development investment slowed to 14.1 percent in the first half from 20.3 percent in the same period of 2013, and housing sales dropped 6 percent year on year in the first six months.

On Saturday, the NBS also released the producer price index (PPI), which measures inflation at wholesale level. The PPI dropped 0.9 percent year on year in July.

It had dropped for 29 months in a row, but the pace of decline has narrowed for four consecutive months, pointing to slight improvement in market demand for industrial products.

Wu Xiaoqiu, president of the Financial and Securities Institute of Renmin University of China, said the CPI and PPI figures showed that China's economic growth is relatively stable and will continue to see a steady upward trend.

Faced with great downward pressure, the government has adopted a raft of pro-growth measures, including stepping up construction of affordable housing, infrastructure building and encouraging private investment.

China's economy expanded by 7.4 percent in the first half, but the growth rate accelerated slightly to 7.5 percent in the second quarter from 7.4 percent in the first. The pace was generally in line with the government's full-year target of around 7.5 percent.

"Food price rises are the major contributor to the July consumer price increase, and a slight month-on-month rise in CPI indicates improved economic activity last month," Wu said. The July CPI was up by 0.1 percent on a month-on-month basis.

He forecast that the CPI will stay at around 2.5 percent without any large fluctuations in the second half of 2014 and that there will not be great pressure for reaching the target of holding CPI at about 3.5 percent.

Guan Qingyou, senior analyst at Minsheng Securities' research institute, said inflation pressure would grow in the final quarter to around 3 percent by the end of this year, as food prices may go up due to short pork supply and severe droughts in some regions.

In the latter half, the government is not likely to loosen up on its monetary policy, Guan said.

Related:

China's July PPI down 0.9%

BEIJING, Aug. 9 (Xinhua) -- China's producer price index, which measures inflation at wholesale level, dropped 0.9 percent year on year in July, the National Bureau of Statistics said Saturday.Full story

China Voice: Recovery beats expectations but risks still lie ahead

BEIJING, Aug. 4 (Xinhua) -- Chinese decision-makers may breathe a sigh of relief as more macro indicators suggest the economy is recovering stronger than market expectations, despite concerns that an unprecedented anti-corruption drive has weighed on growth.

Both the official and HSBC manufacturing purchasing manager's index (PMI)- a key measure of factory activity in China - reports for July showed signs of positive recovery. Full story

China's non-manufacturing PMI retreats in July

BEIJING, Aug. 3 (Xinhua) -- Business activity in China's non-manufacturing sector slightly slowed in July, an official monthly survey showed on Sunday.

The Purchasing Managers Index (PMI) of the non-manufacturing sector came in at 54.2 percent in July, down 0.8 percentage points from June, according to a report jointly released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP).Full story

Xinhua Insight: China's exports beat forecast, surplus sets record

BEIJING, Aug. 8 (Xinhua) -- China's export volume was stronger than expected in July due to recovering external demand, with the monthly trade surplus hitting an all-time high, according to customs data published on Friday.

Last month, exports surged 14.5 percent from the previous year, reaching 212.9 billion U.S. dollars, while imports dropped 1.6 percent to 165.6 billion U.S. dollars, the General Administration of Customs (GAC) said in a statement. Full story

HSBC China data shows continually improving economy

BEIJING, July 24 (Xinhua) -- HSBC China's reading of the country's manufacturing purchasing managers' index (PMI) has risen to its highest point since the start of 2013, adding to signs of national economic improvement.

HSBC's flash PMI figure for July is 52 points, up from 50.7 for June and 49.4 for May and higher than all HSBC final readings since January 2013, the bank announced on Thursday. Full story


分享
HSBC China data shows continually improving economy
News Analysis: Emerging economies of Asia urged to do more to curb income inequality
China vows to ease financing costs for real economy
China logistics activity picks up as economy firms
New-type frigate Quanzhou joins Chinese navy
New-type frigate Quanzhou joins Chinese navy
Chinese FM meets U.S. Secretary of State in Myanmar's capital of Nay Pyi Taw
Chinese FM meets U.S. Secretary of State in Myanmar's capital of Nay Pyi Taw
Tour bus crashes in Tibet, casualties reported
Tour bus crashes in Tibet, casualties reported
Life goes on at temporary settlement in epicenter town of Yunnan quake
Life goes on at temporary settlement in epicenter town of Yunnan quake
U.S. warplanes bomb Islamic State militants in Iraq
U.S. warplanes bomb Islamic State militants in Iraq
National Day Parade held in Singapore
National Day Parade held in Singapore
BJP's national council meeting held in New Delhi, India
BJP's national council meeting held in New Delhi, India
Ecuador's Foreign Relations Minister meets Honduran counterpart in Tegucigalpa
Ecuador's Foreign Relations Minister meets Honduran counterpart in Tegucigalpa
Back to Top Close
010020070750000000000000011108951335444651