09 December 2011 05:51 [Source: ICIS news]
GUANGZHOU (ICIS)--China saw its inflation easing continuously in the past few months with November’s consumer price index (CPI) slowing to 4.2% year on year, data from the National Bureau of Statistics (NBS) showed on Friday.
The CPI has been declining since August after it hit a three-year high of 6.5% in July.
Its producer price index (PPI), which is a gauge of wholesale prices, rose by 2.7% year on year in November, NBS data indicated.
The rise in PPI growth is the lowest recorded in the last 23 months, it said.
On a year-on-year basis, producers’ purchase price increased by 5.1% in November, with their purchase price of fuel and raw chemicals rising by 9.3% and 4.1%, respectively, the bureau said.
Economists said the Chinese government is likely to relax gradually its financial policies as its control over inflation improves.
“The latest cut [on 30 November] on deposit reserve requirement ratio [RRR] was a sign of policy shift, from fighting inflation to securing growth,” said Li Huiyong, chief economist at Shanghai-based SWS Research.
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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