Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Imported inflation is a concern
Adjust font size:

Imported inflation may affect China's financial markets and hinder macro-economic controls aimed at preventing the world's fastest-growing major economy from overheating, the People's Bank of China said.

Consumer prices, which climbed the most in 11 years in February, could keep rising because of higher costs of imported goods, the central bank said in its 2007 China Financial Markets Development Report posted on its Website yesterday.

Premier Wen Jiabao in March named fighting inflation as the government's top priority this year and froze fuel and utility prices. The rising cost of grain and production goods on international markets will "increase inflationary pressure in China," the report said.

Consumer prices jumped 8.7 percent in February as food and fuel costs surged. The government said it aims to keep inflation in 2008 below last year's average 4.8 percent, Bloomberg News said. Still, the central bank said the likelihood that prices will keep rising "still exists for the coming period of time" as a result of higher import prices and inflation expectations.

The growth in the country's trade surplus "may slow gradually" as world economic expansion weakens, according to the report.

"Some developed markets are transferring risks to emerging markets using their financial advantages," the report said. That has "aggravated instability in global financial markets" and volatility in China's financial markets may increase as a result.

China will speed up the development of its bond market and introduce derivative products based on bank loans and corporate bonds, according to the report. The central bank will also study foreign-currency futures and options.

China will introduce real estate investment trusts "at a proper time," the report said.

(Shanghai Daily April 11, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- Inflation forecast to hit 8% in first quarter
- Macro controls face test amid global slowdown, domestic inflation
- Inflation measures hit sector
- China hikes minimum grain purchase prices to fight inflation
- Minimum grain purchase prices hiked to fight inflation
- China fuels agriculture to cool inflation
- Gov't fuels agriculture to cool inflation
Most Viewed >>
- 2007 GDP growth revised upward to 11.9%
- Yuan breaches 7 mark against US dollar
- Trade surplus shrinks 10.8% in 1st quarter
- Nuclear power firms  to get tax rebate
- Toymaker volunteers to recall products

April 11-13 Boao Forum for Asia

May 15-17 Shanghai Women's Forum Asia

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?