Arab Today, arab today china inflation at near threeyear high
Last Updated : GMT 19:08:27
Arab Today, arab today
Arab Today, arab today

Fears of social unrest grow

China inflation at near three-year high

Arab Today, arab today

Arab Today, arab today China inflation at near three-year high

Rising food prices have increased fears of social unrest in China
Beijing - Arabstoday

Rising food prices have increased fears of social unrest in China Beijing - Arabstoday China\'s consumer price index, the official measure of inflation, has reached its highest level for nearly three years. The National Statistics bureau said on Tuesday that consumer prices in May

 rose 5.5 per cent over a year earlier, driven by an 11.7 per cent jump in food costs.
The world\'s second-largest economy is \"still facing significant inflationary pressures\" and must implement measures to contain prices, Sheng Laiyun, national bureau of statistics spokesman, said.
The inflation for last month was up from April\'s 5.3 per cent rate and exceeded March\'s 32-month high of 5.4 per cent.
The figure was in line with economists\' forecasts, but well above the government\'s four per cent target for the year.
May\'s inflation rate is the highest in nearly three years, when the index rose to 6.3 per cent.
Michael Pettis, professor of finance at Peking University in Beijing, told Al Jazeera, \"most of us were expecting them [inflation rate] and they are going to continue probably for another month or two before we start seeing them go down\".
\"What\'s more interesting are the new lending numbers, the new loans are down pretty substantially that\'s really the policymakers\' main target,\" Pettis said.
\"They are going to slowdown expansion in lending and expansion in investment as a way of bringing down activity in the economy.
\"But they are not going to act in a hurry, they are concerned about excessive slowdown and will see continuous gentle slowdown of economy.\"
China\'s ruling communist party has been feeling nervous about the rising inflation, which has stoked fears of social unrest in the country.
Violent protests have become frequent in recent years but the past few weeks have been particularly turbulent, with bombings and street demonstrations from Inner Mongolia in the north to Guangdong in the south.
Though the triggers for the events varied, most have been driven by resentment over social inequality, abuse of power and suppression of legitimate grievances.
Surging prices for food and other basic necessities have added to those frustrations.
\"Inflation numbers are especially bad in food and less bad in non-food items. And poor people consume much larger share of their basket in the form of food,\" Pettis said.
\"So, the 5.5 per cent that we have seen is really an everage, the poor you are, the higher your inflation rate actually is.\"
While seeking to impose social \"harmony\" and cracking down on dissent, the leadership has resorted to a host of economic measures.
In order to check the rising inflation, Beijing has hiked interest rates four times since October 2010.
Apart from the interest rate rises, China has repeatedly raised the amount of money that banks must keep in reserve to stem credit growth.
The government reported on Monday that bank lending fell in May, indicating that the government\'s tightening of the money flow into the market was working.
\"Lot of people are worried about property bubble but am more worried about overinvestment generally: in infrastructure, property and manufacturing capacity,\" the professor said.
\"Interest rate in China has been way too low for way too long and it\'s proving increasingly difficult to raise interest rate.
\"But without raising we are going to continue to see lot of overinvestment. For me property bubble is one of the manifestations of overinvestment problem in China.\"
But food prices have remained high, as drought and other weather disasters have decimated crops in large parts of the country.
Rising consumer demand is outstripping food supplies, while a bank lending boom spurred by Beijing\'s response to the 2008 global crisis has further inflated demand for key commodities.
China also released other economic data for 2011 on Tuesday.
Industrial output rose 13.3 per cent from a year earlier in May, but slightly slower than the 13.4 per cent in April amid electricity shortages and a government clampdown on bank lending.
Apart from industrial output, there were other signs the Asian powerhouse slowed in May - year-on-year car sales fell for the second straight month, new loans dropped more than expected and manufacturing activity lost steam.
Some analysts are concerned that authorities may have gone too far in trying to slow the economy, which grew a blistering 9.7 per cent in the first quarter.

From Al Jazeera English
 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china inflation at near threeyear high Arab Today, arab today china inflation at near threeyear high

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday