http://www.bernanke.cn/index.php/category/china-news/
Early Data for May, including producer prices and money-supply numbers, indicate that inflationary pressure in China is building.
The new numbers will keep policy makers leaning toward tightening measures, analysts say. But they said the central bank, the Peopleâs Bank of China, is unlikely to take aggressive steps, such as raising interst rates or bank-reserve reqirements, until it has assessed the effects of a rate increase in April and recent curbs on the countryâs property market.
The producer-price index in May rose 2.4% from a year earlier, the National Bureau of Statistics said. snapping a string of months since September in which the year-over-year pace slowed. Last monthâs gain was higher than the 1.9% increase in April.
For the first five months of this year, the PPI, a measure of price changes in the pipeline, was up 2.6% from the same period a year earlier.
Producer prices will likely receive a further boost in June because the data from May probably didnât fully reflect an 11% to 12% increase in the ex-factory price-the price at the refinery gate and different from the retail or wholesale priceâof domestic gasoline, dieset and let kerosene that took effect May 24. That increase was the biggest in three years.
Many central banks around the globeâincluding the U.S. Federal Reserve and the European Central Bankâ are grappling with inflationary pressures. Thursday, the European Central Bank, along with central banks from India and South Korea, raised interest rates, partly because of worries about inflation and a bid to stamp out a period of easy credit.
Chinaâs money-supply data also show indicate that price pressures remain strong. The state-owned ShangHai securities news reported that M2, the broadest measure of money suply calculated in China, rose 19.5% at the end of May from a year earlier.
The central bank, which issues the data around the 10th of each month, wouldnât comment on the Shanghai report.
Economists polled by Dow Jones Newswires estimated that M2 rose 18.8% in May, after an 18.9% rise in April. The central bank has a 16% growth target for M2 this year.
If the Shanghai report is accurate, Mayâs M2 figures would be the highest since the 19.6% growth posted in December 2003, the year Beijing began its last tightening cycle.
In late April, the Peopleâs Bank of China raised its benchmark lending rate 0.27% percentage point to 5.85%, and last month the country took administrative steps to curb a swift rise in housing prices.
Bank Gov. Zhou xiaochuan said last week that the effects of monetary policy canât be seen immediately and the bank is monitoring the situation, but it wonât raise rates right now.
http://www.bernanke.cn/index.php/category/china-news/
Early Data for May, including producer prices and money-supply numbers, indicate that inflationary pressure in China is building.
The new numbers will keep policy makers leaning toward tightening measures, analysts say. But they said the central bank, the Peopleâs Bank of China, is unlikely to take aggressive steps, such as raising interst rates or bank-reserve reqirements, until it has assessed the effects of a rate increase in April and recent curbs on the countryâs property market.
The producer-price index in May rose 2.4% from a year earlier, the National Bureau of Statistics said. snapping a string of months since September in which the year-over-year pace slowed. Last monthâs gain was higher than the 1.9% increase in April.
For the first five months of this year, the PPI, a measure of price changes in the pipeline, was up 2.6% from the same period a year earlier.
Producer prices will likely receive a further boost in June because the data from May probably didnât fully reflect an 11% to 12% increase in the ex-factory price-the price at the refinery gate and different from the retail or wholesale priceâof domestic gasoline, dieset and let kerosene that took effect May 24. That increase was the biggest in three years.
Many central banks around the globeâincluding the U.S. Federal Reserve and the European Central Bankâ are grappling with inflationary pressures. Thursday, the European Central Bank, along with central banks from India and South Korea, raised interest rates, partly because of worries about inflation and a bid to stamp out a period of easy credit.
Chinaâs money-supply data also show indicate that price pressures remain strong. The state-owned ShangHai securities news reported that M2, the broadest measure of money suply calculated in China, rose 19.5% at the end of May from a year earlier.
The central bank, which issues the data around the 10th of each month, wouldnât comment on the Shanghai report.
Economists polled by Dow Jones Newswires estimated that M2 rose 18.8% in May, after an 18.9% rise in April. The central bank has a 16% growth target for M2 this year.
If the Shanghai report is accurate, Mayâs M2 figures would be the highest since the 19.6% growth posted in December 2003, the year Beijing began its last tightening cycle.
In late April, the Peopleâs Bank of China raised its benchmark lending rate 0.27% percentage point to 5.85%, and last month the country took administrative steps to curb a swift rise in housing prices.
Bank Gov. Zhou xiaochuan said last week that the effects of monetary policy canât be seen immediately and the bank is monitoring the situation, but it wonât raise rates right now.
http://www.bernanke.cn/index.php/category/china-news/