Statistics

China Feb CPI up 4.9%

(Xinhua)
Updated: 2011-03-11 10:17

In February, the producer purchase price climbed 10.4 percent year-on-year, with purchase prices of non-ferrous metal, fuel and ferrous metal up 14.8 percent, 8.9 percent and 15.8 percent from a year ago, according to the NBS.

Analysts estimate the country's inflation will probably peak in May or June this year. "It remains uncertain whether the inflation will drop sharply in the second half of the year considering the imported inflation," said Chen Ying, analyst with Sealand Securities.

On Thursday, the General Administration of Customs said the country recorded a trade deficit of $7.3 billion in February as the Spring Festival, or the Lunar New Year holiday season dented exports.

Related readings:  Adviser: Inflation to hit 5%  China able to keep inflation around 4%  Feb consumer prices set to fall: official  Inflation putting heat on govt

That was China's second monthly trade deficit in a year, after the country announced a deficit of $7.24 billion in March 2010, which was, at that time, the first time in six years.

Market observers said the sudden deficit was linked to a rising yuan, instabilities in external markets, and rising labor costs.

The Chinese government has pledged to tame consumer prices in an effort to  ensure social stability in the world's most populous country and second largest economy.

Premier Wen Jiabao has reaffirmed that China will continue to implement a proactive fiscal policy and prudent monetary policy in 2011.

The People's Bank of China (PBOC), the central bank, has boosted the reserve requirement ratio for commercial banks eight times since the beginning of 2010 and raised interest rates three times to rein in inflation.

"There will be an interest rate increase in March. The authorities should consider other methods to absorb liquidity rather than simply resort to monetary policies," said Pan Xiangdong, chief economist at Everbright Securities.

 

Feb Statistics

China's PPI up 7.2% in February
Jan-Feb industrial output up 14.1%
Jan-Feb fixed asset investment up 24.9%
China reports largest trade deficit in 7 years
Retail sales up 15.8% in first two months
China's PMI drops to 6-month low in February