11 November 2010 05:23 [Source: ICIS news]
GUANGZHOU (ICIS)--Inflation in ?xml:namespace>
On a year-on-year basis, China’s consumer price index (CPI) increased by 4.4% in October, while its producer price index (PPI) rose by 5%, data from the National Bureau of Statistics (NBS) showed. The October CPI was a 25-month high.
The Chinese central bank announced late on Wednesday that it would raise the bank reserve ratio by half a percentage point in its latest move to curb accelerating inflation.
In October, the country’s industrial output grew by 13.1% year on year, but the growth was down by 0.2 percentage points from September. Total retail sales increased by 18.6% year on year, but the growth was down by 0.2 percentage points compared with September, NBS data showed.
Fixed-asset investments jumped 24.4% year on year during the January-October period, 0.1 percentage points lower than in the first nine months of 2010, the NBS said.
Analysts said that the deceleration in investments and exports was the result of governmental controls that focus more on “growth quality” than “growth rate”.
“October’s CPI exceeded the market expectation of 4% and inflation would extend throughout this year,” said Qiu Ziyuan, chief analyst at Shenzhen-based broker China Merchants Securities (CMS). “The government may hike interest rates again later this year on inflation concerns.”
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