Arab Today, arab today keep the lid on inflation
Last Updated : GMT 15:04:20
Arab Today, arab today
Arab Today, arab today

Keep the lid on inflation

Arab Today, arab today

Arab Today, arab today Keep the lid on inflation

Beijing - Xinhuanet

That China\'s inflation rate has slowed for three straight months after peaking at a 37-month high of 6.5 percent in July is solid evidence that there is a desired modest slowdown in the world\'s second-biggest economy.Undoubtedly, Chinese policymakers can breathe more easily for the moment as their hard fight against inflation is now beginning to bear fruit. Though the country\'s consumer price index (CPI) rose 5.5 percent year-on-year in October, still far above the government\'s full-year target of 4 percent, inflation worries have ostensibly eased amid increasing optimistic forecasts of even lower price gains in coming months. The ongoing fall in the CPI is, of course, no guarantee of a definite victory in the war against inflation. For instance, as Premier Wen Jiabao recently warned, the coming winter will be the peak period for consumer demand but also the slack season for vegetable production in the country\'s north. However, thanks to all the tightening measures to tame inflation, China\'s economic growth has fallen for three straight quarters and is even expected to slow to less than 9 percent next year for the first time in a decade. If the pace of economic growth continues to slow, it is reasonable to believe that the Chinese government will sooner or later be able to bring inflation under firm control in the absence of any external shocks. Yet, it is one thing to show more confidence in the uphill struggle against accelerating inflation, it is quite another to lower our guard against inflationary pressures too early. Citing the difficulties of a large number of small businesses, especially in the export sector, some people have called for credit easing to cushion this sector of the economy, which supports 75 percent of China\'s jobs. More loans and higher economic growth may indeed help some small enterprises. But runaway inflation that drastically drives up wages and the prices of raw materials pose a much bigger threat to the very survival of the majority of such enterprises. Hence, when extending a helping hand to small enterprises, Chinese policymakers must weigh carefully the implication of any attempt to quickly change course during the fight against inflation. Another reason for Chinese policymakers to still make taming inflation a top priority is that economic growth must be as inclusive as possible. Food-led inflation is always one of the main culprits for the widening income disparity in the country, as it hits the poor hardest. The October 11.9-percent surge in food prices - which account for nearly one-third of the CPI - shows that the need to arrest consumer inflation, particularly for the interest of the poor, remains imperative.

arabstoday
arabstoday

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 keep the lid on inflation Arab Today, arab today keep the lid on inflation

 



Arab Today, arab today

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 keep the lid on inflation Arab Today, arab today keep the lid on inflation

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
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