Downbeat in China's Consumer Price Index
Monday, March 9, 2009
China's consumer price index (CPI), a main measure of price rises, fell to minus 1.6% in February, according to the NBS (National Bureau of Statistics) on Tuesday. This was the initial journal of downbeat from the month of December 2002 when CPI was offbeat to minus 0.4%.
According to NBS’s that the February outline did not characterize a depreciation dilemma in China, as the currency delivery was sufficient since the proactive financial strategy and the comparatively easy financial strategy. "We do face price downward pressure, but that cannot be translated into a deflation problem," said Zhang Xiaoji, a researcher with the Development Research Center of the State Council, a government think tank.
Again according to NSB’s statement about falling global commodity prices, led by the worldwide fiscal crisis, contributed to the household price plunge. It is not strange to observe a value rise in February. Last February adage the unparalleled snow tragedy, and the Spring Festival shopping spree, which helped shove up the price rises index to a 12 year high of 8.7 %. NBS supposed the CPI in February was the almost identical as that in January. The CPI in the initial two months fell 0.3% from the same phase last year.
“It is not astonishing if the indexes persist to vary in the off-putting range in forthcoming months, as both household and abroad demands have been falling from the late of last year”, said by “Wang Xiaoguang”, an economist of National Development and Reform Commission.
Lastly, there was a market fizz in the goods price rise in early of year 2008. Food prices, which are an explanation for about one third of CPI, fell down 1.9%, whereas non-food goods prices sank 1.2%. China has put a full-year price rises target of 4% for the year 2009.
According to NBS’s that the February outline did not characterize a depreciation dilemma in China, as the currency delivery was sufficient since the proactive financial strategy and the comparatively easy financial strategy. "We do face price downward pressure, but that cannot be translated into a deflation problem," said Zhang Xiaoji, a researcher with the Development Research Center of the State Council, a government think tank.
Again according to NSB’s statement about falling global commodity prices, led by the worldwide fiscal crisis, contributed to the household price plunge. It is not strange to observe a value rise in February. Last February adage the unparalleled snow tragedy, and the Spring Festival shopping spree, which helped shove up the price rises index to a 12 year high of 8.7 %. NBS supposed the CPI in February was the almost identical as that in January. The CPI in the initial two months fell 0.3% from the same phase last year.
“It is not astonishing if the indexes persist to vary in the off-putting range in forthcoming months, as both household and abroad demands have been falling from the late of last year”, said by “Wang Xiaoguang”, an economist of National Development and Reform Commission.
Lastly, there was a market fizz in the goods price rise in early of year 2008. Food prices, which are an explanation for about one third of CPI, fell down 1.9%, whereas non-food goods prices sank 1.2%. China has put a full-year price rises target of 4% for the year 2009.
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