The National Bureau of Statistics just released whole bunch of numbers. The mostly watched, of course, is consumer price index (CPI).
Inflation stayed at 4.9% in Feb 2011 on an year-on-year basis, same as the January 2011 level. Inflation in urban areas rose 4.8% and 5.5% in rural areas.
Food prices were still the biggest part of the inflation, rising 11% over a year ago, or 3.7% over the previous month. Special mention: prices of fresh vegetable rose 15.2% in February over the previous month.
On a separate note, the producer price index (PPI) in February rose 7.2% over a year ago, faster than 6.6% in January. Input prices rose 10.4% over a year ago, vs. 9.7% in January.
Source: National Bureau of Statistics
The headline inflation is 0.1 per cent higher than consensus. Although stable at 4.9%, it is still way above the 4% target of the government. On the whole, inflation risk is still on the upside as producer prices and the input price component of February 2011 purchasing manager index (PMI) were both edging higher, suggesting further inflationary pressure.
My general view hasn’t changed much: I expect more tightening down the road, even though there are already signs that the Chinese economy is slowing down.
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This article originally appeared here: China: Inflation Stayed At 4.9% In Feb 2011
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