WSJ details:
China's main inflation measures remained in negative territory in April, new data issued Monday show, but economists said the risk of sustained deflation in the world's third-largest economy is subsiding as bank lending surges and other economic indicators start to show improvement.
But much of the current drop reflects a comparison with a huge price spike in the first half of 2008: inflation in April last year was 8.5%. Prices of raw materials have actually been picking up in recent weeks, though they remain below last year's highs.
That reflects increasing indications that China's economy is bottoming out: Growth in fixed-asset investment and industrial output accelerated significantly in March. Chinese banks are also pumping enormous amounts of liquidity into the economy, extending 4.58 trillion yuan (around $671 billion) of new yuan loans in the first three months of 2009, nearly as much as in all of last year.
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4 comments:
The reason for 2008's high CPI was due to the surge in pork price. If one takes the pork away, the cpi was moderate.
that's a lot of pork
Yes, that is a lot of pork. Have you ever been in a chinese resturant? You will find pork is a very important integrient in their diets, BBQ pork, prawn dumpling...
Most of the people in China are still very poor. Food is a big proportion to their expenses.
http://english.gov.cn/2009-05/11/content_1310538.htm
If you can read chinese, then read
http://www.gov.cn/gzdt/2009-05/12/content_1311865.htm
and the google poorly translated text:
http://translate.google.com/translate?prev=hp&hl=zh-TW&js=n&u=http%3A%2F%2Fwww.gov.cn%2Fgzdt%2F2009-05%2F12%2Fcontent_1311865.htm&sl=zh-CN&tl=en
thanks for the info
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