Q+A: How serious is China’s inflation? What will Beijing do?
BEIJING (Reuters) – China’s consumer price inflation sped to a 25-month high in October, rising 4.4 percent from a year earlier. With producer prices jumping, pipeline inflationary pressure also appears to be quite strong.
Here are some questions and answers about the source of inflation in China and possible policy responses.
Inflation “under-statement” sparks row in China
BEIJING (Reuters) – With price pressures on the rise in China, a rare public spat has broken out in government circles about whether the statistics agency is suppressing the full truth of how high inflation really is.
Many Chinese have long harboured suspicions about the quality of official inflation data, saying that it does not adequately capture soaring property prices or food costs.
Jump in China inflation paves way for more tightening
BEIJING, Nov 11 (Reuters) – Chinese inflation sped to a
25-month high in October and bank lending blew past
expectations, highlighting the challenge faced by Beijing as it
battles to keep a lid on price pressures.
The data left little doubt about why the central bank
raised reserve requirements this week and pointed to further
tightening steps, from rate rises to yuan appreciation, in
coming months.
Sun sets on steamrollers as China stimulus plan ends
BEIJING (Reuters) – Every night after Beijing goes to sleep, a swarm of steamrollers, excavators and dump trucks takes over the city and embarks on a construction frenzy that lasts until dawn when office workers reclaim the streets.
Flattening ground for new roads, building bridges and digging subway tunnels, they are the moonlit manifestation of an investment surge that has multiplied throughout the vast country over the past two years. In doing so, they have propelled China past the global financial crisis and propped up the world economy, but have also left a murky trail of bad bank loans and wasteful investment in their wake.
China hits back at U.S. plans before G20 summit
BEIJING (Reuters) – China on Friday pushed back strongly against U.S. policies ahead of a G20 summit, ridiculing Washington’s plan to set current account targets and warning of risks in the Fed’s monetary easing.
The remarks by Cui Tiankai, a vice Chinese foreign minister, were the first high-level expression of Beijing’s stance on the issues.
China c.banker: QE2 exposes global monetary flaws
BEIJING, Nov 5 (Reuters) – The U.S. Federal Reserve’s launch
of more quantitative easing is understandable, but the decision
may pose problems for the global economy and illustrates why the
international monetary system must be reformed, China’s central
bank governor said on Friday.
Zhou Xiaochuan, head of the People’s Bank of China, made
waves last year in suggesting that the Special Drawing Right, the
IMF’s unit of account, should eventually displace the dollar as a
global reserve currency.
China: QE2 exposes global monetary flaws
BEIJING (Reuters) – The U.S. Federal Reserve’s launch of more quantitative easing is understandable, but the decision may pose problems for the global economy and illustrates why the international monetary system must be reformed, China’s central bank governor said on Friday.
Zhou Xiaochuan, head of the People’s Bank of China, made waves last year in suggesting that the Special Drawing Right, the IMF’s unit of account, should eventually displace the dollar as a global reserve currency.
Analysis: Sun sets on steamrollers as China stimulus plan ends
BEIJING (Reuters) – Every night after Beijing goes to sleep, a swarm of steamrollers, excavators and dump trucks takes over the city and embarks on a construction frenzy that lasts until dawn when office workers reclaim the streets.
Flattening ground for new roads, building bridges and digging subway tunnels, they are the moonlit manifestation of an investment surge that has multiplied throughout the vast country over the past two years. In doing so, they have propelled China past the global financial crisis and propped up the world economy, but have also left a murky trail of bad bank loans and wasteful investment in their wake.
China hits back at U.S. plans for G20 meeting
BEIJING, Nov 5 (Reuters) – China on Friday pushed back
strongly against U.S. policies ahead of the G20 summit,
ridiculing Washington’s plan to impose current account targets
and warning of risks in the Fed’s monetary easing.
The remarks by Cui Tiankai, a vice Chinese foreign minister,
were the first high-level official stance from Beijing on the
issues.
China manufacturing growth leaps past forecasts
BEIJING (Reuters) – China’s factories ramped up their production last month and were buoyed by an influx of new business, highlighting the strength of the world’s second-largest economy but also pointing to price pressures.
Two surveys of the manufacturing sector, which are designed to provide an early indication of conditions in a broad range of industries, both jumped to six-month highs in October.
