Arab Today, arab today china eyes inflation below 5in next 2 months
Last Updated : GMT 08:14:24
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China eyes inflation below 5%in next 2 months

Arab Today, arab today

Arab Today, arab today China eyes inflation below 5%in next 2 months

Hong Kong - Yonhap

China\'s inflation is likely to stay below 5 percent in the next two months, the country\'s top economic planner said Monday, suggesting rising prices will slowly ease. The country\'s consumer price index (CPI) grew 6.1 percent in September from a year earlier as the world\'s No. 2 economy continued to enjoy robust economic growth and excess liquidity. The Chinese National Development and Reform Commission said the country\'s inflation has already peaked, and will likely remain less than 5 percent in November and December as the country\'s financial tightening takes effect. China\'s CPI reached 6.5 percent in July, hitting a record high in 37 months. To curb the country\'s persistent inflation, the central People\'s Bank of China has raised the benchmark interest rate three times this year, while increasing the amount of money banks must keep in reserve a total of six times. Market watchers predicted China is not expected to relax its monetary policy this year as the full-year inflation rate will likely be higher than 5 percent. The Chinese government\'s yearly target for this year is 4 percent. \"The People\'s Bank of China is unlikely to shift its anti-inflation bias before a clear downward trend on-month in inflation is seen,\" said Chang Jian, an analyst at Barclays Capital.

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