Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Bank of China predicts 7.5% CPI rise in January
Adjust font size:

The Bank of China has forecasted a 7.5 percent or even higher rise in the January Consumer Price Index (CPI), mainly fuelled by rocketing food prices and the worst snow disaster in decades.


The bank said in report issued Friday that the CPI would rise between 5 to 7 percent in the first half this year, and decelerate to 3-4 percent in the latter half. The yearly CPI increase for 2008 would stay at the same 4.8 percent as that of last year.


The yearly GDP growth would be 10 percent, less than the 11.4 percent for 2007, the bank predicted.


The grain price rise last December helped stir up another round of food price jump, which is the main force driving up the inflation index, the report said.


Grain prices in major wholesale markets rose by a year-on-year 10 percent in 2007, and the prices of soybean, corn and wheat jumped between 7.2 to 25 percent last year.


The report noted the massive losses from the snow havoc could help fuel inflation in the short-term. The disaster, however, could take a limited toll on the national economy in the long run.


The CPI rose 4.8 percent in 2007 and hit an 11-year high of 6.9 percent in November, well above the government target of 3 percent.


The report suggested the central bank should tighten monetary policies to curb inflation and continue to stimulate domestic demand. One or two interest rate hikes are advisable.


Another deposit reserve ratio rise is projected by the bank this month.


(Xinhua News Ageny February 17, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- Call to ensure enough goods' supply
- Price intervention extended to fertilizer
- CPI up 4.8 percent in 2007
- January CPI expected to rise 6.5%
- January CPI growth likely to hit new high
- Central bank deliberates interest rate rise
Most Viewed >>
- More oil futures products needed

Nov. 1-2 Tianjin World Shipping (China) Summit
Nov. 7-9 Guangzhou Recycling Metals International Forum
Nov. 27-28 Beijing China-EU Summit
Dec. 12-13 Beijing China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?