China central bank think tank sees H1 inflation easing, CPI up 3.15 pct
Wednesday, March 30, 2005 4:59:17 AM
afxpress.com
BEIJING (AFX) - The People's Bank of China, the central bank, expects inflationary pressure to ease in the months ahead, with the consumer price index rising 3.15 pct year-on-year in the first half, the official Financial News reported
Citing a research report from the central bank, the newspaper said that excluding the lagging effects from previous months, new price increase during the January-February period were the highest in the past five years
The CPI rose 2.9 pct year-on-year over the first two months and was up 3.9 pct in February alone
But the central bank said weather and the Chinese lunar new year holiday were key drivers behind the price surge in February. As money supply returns to a more reasonable range, inflationary pressure will ease, the central bank said
Consumers are also becoming more satisfied with current price levels and inflationary expectations are easing, the research note said
The central bank said it expects full year CPI growth to range between 3 and 3.5 pct
An investment rebound, rising labor costs and mounting raw material and energy prices on the international market will be the key factors behind price rises in the near term, the central bank said
The central bank also said it expects gross domestic product growth of 8.8 pct year-on-year in the first half and 8.7 pct for the full year. That compares with an eight pct target set by the central govenment at the beginning of this year |
