Beijing, Jan 12(ANI): The inflation rate continues to worry Chinese policymakers.
China's inflation rate observed a marginal change last month, despite government efforts to slash down prices.
The National Bureau of Statistics said consumer prices climbed 4.1 per cent from the same month last year, which is down from 4.2 percent in November.
Market analysts believe price growth is expected to slow down further and quicker in 2012.
The inflation rate was pegged at 5.4 per cent for the full year and which is well above the target the government had set, The BBC reports.
Jain Chang, China economist at Barclays Capital, said that there was usually a pick up in prices in the month before and after the Chinese New Year, which will start on 23 January.
But she said that everyone had anticipated for price growth to carry on moderating throughout 2012.
She added that China's policymakers are expected to stay watchful over inflation and are unlikely to considerably ease their monetary policy until it was clear that inflation is fully under control.
China had recently adopted various measures to put a restraint over growing inflation rates, which included cutting interest rates, and increasing the amount of money banks must keep in reserve.
China has already taken smaller steps to enhance its economic expansion, and in November it slashed the amount of cash banks are required to keep in reserve for the first time in three years.
However, once inflation is brought under control, China will probably shift some policies towards reinforcement of domestic growth, particularly as it is facing a number of external problems such as the euro zone debt crisis.ANI)
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