China inflation Grows - Beijing has hiked interest rates four times To check the rising inflation

Author:
China inflation Grows - Beijing has hiked interest rates four times To check the rising inflation: The National Statistics bureau said on Tuesday that consumer prices in May rose 5.5 per cent over a year earlier, driven by an 11.7 per cent jump in food costs.

The world's second-largest economy is "still facing significant inflationary pressures" and must implement measures to contain prices, Sheng Laiyun, national bureau of statistics spokesman, said.

The inflation for last month was up from April's 5.3 per cent rate and exceeded March's 32-month high of 5.4 per cent.

The figure was in line with economists' forecasts, but well above the government's four per cent target for the year.

May's inflation rate is the highest in nearly three years, when the index rose to 6.3 per cent.


To Checking money flow and the rising inflation Beijing ( china ) Has hiked interest rates four times since October 2010.

Apart from the interest rate rises, China has repeatedly raised the amount of money that banks must keep in reserve to stem credit growth.

The government reported on Monday that bank lending fell in May, indicating that the government's tightening of the money flow into the market was working.
Posted by Sumber Cara Wanita
"Lot of people are worried about property bubble but am more worried about overinvestment generally: in infrastructure, property and manufacturing capacity," the professor said.

"Interest rate in China has been way too low for way too long and it's proving increasingly difficult to raise interest rate.

"But without raising we are going to continue to see lot of overinvestment. For me property bubble is one of the manifestations of overinvestment problem in China."

But food prices have remained high, as drought and other weather disasters have decimated crops in large parts of the country.

Rising consumer demand is outstripping food supplies, while a bank lending boom spurred by Beijing's response to the 2008 global crisis has further inflated demand for key commodities.

China also released other economic data for 2011 on Tuesday.

Industrial output rose 13.3 per cent from a year earlier in May, but slightly slower than the 13.4 per cent in April amid electricity shortages and a government clampdown on bank lending.

Apart from industrial output, there were other signs the Asian powerhouse slowed in May - year-on-year car sales fell for the second straight month, new loans dropped more than expected and manufacturing activity lost steam.

Some analysts are concerned that authorities may have gone too far in trying to slow the economy, which grew a blistering 9.7 per cent in the first quarter.

The following chart was taken from China NBS, AFP.

 China inflation at near three-year high
This News was adopted from al-jazeera English " China inflation at near three-year high " on June 14 2011.
China inflation Grows - Beijing has hiked interest rates four times To check the rising inflation
Tagging: Beijing Consumer index flows, China`s Inflations, Inflation fact and news from Beijing, Worlds Crisis

You might also Want to know :

That Lesbian Blogger is a Man Betrayal of trust