China Dec inflation slows from 28-mth high
BEIJING: Chinese consumer prices rose 4.6 percent in the year to December, Hong Kong media reported on Wednesday, a slowdown from a 5.1 percent pace in November that would reduce the need for aggressive monetary tightening.
The rate of inflation would, however, exceed the 4.4 percent forecast in a poll, keeping pressure on the government to mop up the excess cash in the economy that has driven prices higher.
China's gross domestic product (GDP) grew 10.3 percent last year, Hong Kong-based Phoenix Television also reported on its website. The median forecast of economists polled by Reuters was for GDP to increase 10.2 percent.
Phoenix TV cited an unnamed central bank source. Similar numbers had been circulating as rumours in the domestic market.
China is scheduled to publish the numbers at 0200 GMT on Thursday.
The country's main stock index in Shanghai rose 1 percent in its morning session, clawing back some ground after falling steeply at the start of the week.
Weekly food price movements have long pointed to a decline in inflationary pressure in December, but many analysts also reckoned that any slowdown in inflation could be temporary.
China is not alone in battling inflation. A quarterly poll showed policymakers across Asia are expected to tighten monetary policy this year to curb rising prices, even if that risks dampening growth.
The Chinese economy is seen slowing a touch to grow 9.3 percent this year while inflation quickens to 4.3 percent.
Analysts expect China's inflation to pick up as soon as January because the Lunar New Year holiday falls earlier in the calendar this year compared with 2010 and because of harsh ! winter w eather.
Food price data compiled by the commerce ministry has showed that vegetables and meat have become more expensive since the start of the year.
China has officially raised banks' required reserves seven times since the start of last year, but has increased interest rates only twice during that time. Many economists and investors expect that gradual mode of tightening to continue in coming months.
China's full-year CPI in 2010 rose an average of 3.3 percent, while the producer price index increased an average of 5.9 percent in 2010, Phoenix TV added.
The rate of inflation would, however, exceed the 4.4 percent forecast in a poll, keeping pressure on the government to mop up the excess cash in the economy that has driven prices higher.
China's gross domestic product (GDP) grew 10.3 percent last year, Hong Kong-based Phoenix Television also reported on its website. The median forecast of economists polled by Reuters was for GDP to increase 10.2 percent.
Phoenix TV cited an unnamed central bank source. Similar numbers had been circulating as rumours in the domestic market.
China is scheduled to publish the numbers at 0200 GMT on Thursday.
The country's main stock index in Shanghai rose 1 percent in its morning session, clawing back some ground after falling steeply at the start of the week.
Weekly food price movements have long pointed to a decline in inflationary pressure in December, but many analysts also reckoned that any slowdown in inflation could be temporary.
China is not alone in battling inflation. A quarterly poll showed policymakers across Asia are expected to tighten monetary policy this year to curb rising prices, even if that risks dampening growth.
The Chinese economy is seen slowing a touch to grow 9.3 percent this year while inflation quickens to 4.3 percent.
Analysts expect China's inflation to pick up as soon as January because the Lunar New Year holiday falls earlier in the calendar this year compared with 2010 and because of harsh ! winter w eather.
Food price data compiled by the commerce ministry has showed that vegetables and meat have become more expensive since the start of the year.
China has officially raised banks' required reserves seven times since the start of last year, but has increased interest rates only twice during that time. Many economists and investors expect that gradual mode of tightening to continue in coming months.
China's full-year CPI in 2010 rose an average of 3.3 percent, while the producer price index increased an average of 5.9 percent in 2010, Phoenix TV added.
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