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ReturnTop statistician forecasts Chinaˊs CPI at 4.5-4.6% for whole year
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PublishDate：
2007-11-26 16:17:00
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BEIJING, Nov. 23 (Xinhua) -- China's consumer price index (CPI) will rise 4.5 percent to 4.6 percent for the whole of the current year, which will indicate a moderate and tolerable inflation, the country's top statistician Xie Fuzhan said Thursday at Tsinghua University.
Xie, head of the National Bureau of Statistics, added that the monthly rate of CPI would likely linger at 6 percent or so for several months yet.
China's CPI, a major inflation measurement, hit 6.5 percent in August, 6.2 percent in September and 6.5 percent again in October, all well above the government-set alarm level of 3 percent.
Xie said the CPI rises were driven up mainly by price hikes for foodstuffs, which were mainly caused by rising production costs.
According to Xie, global price rises for crude oil fuelled price rises for industrial products. Meanwhile, price rises for nonferrous metals and iron ores also contributed to the CPI increase.
"Substantial price rises for real estate and equities translate to higher risks on economic growth in the long term," he said.
To stabilize the national economy, Xie believed, the volume of gross domestic product should be put under control and the GDP growth rate should be brought back to within 10 percent through use of both monetary and fiscal policies.
According to Xie, the Government will continue a moderately tight macro-economic policy for a short period of time to utilize monetary policies to control liquidity and to prevent credits and investment from growing too fast.
China's central bank has raised commercial banks' reserve requirement ratio nine times and interest rates five times this year.
Xie forecast China's GDP growth at 11.5 percent for the whole of this year.
He said the exchange rate of China's currency, Renminbi, should be more flexible.
On Nov. 19, Premier Wen Jiabao said at the National University of Singapore that China would continue to improve the RMB exchange rate mechanism and gradually make the RMB convertible under capital account.
Last Sunday, China's central bank governor Zhou Xiaochuan said if necessary, the nation will consider widening the yuan's trading band.
But any change in the yuan's floating band will depend on the global economic situation and it's not the only tool the country would use to make its currency more flexible, Zhou said at the Group of 20 meeting in Cape Town, South Africa.
China widened the yuan's daily trading band against the U.S. dollar from plus or minus 0.3 percent to 0.5 percent in May.
On Friday, RMB's central parity rate stood at 7.3992 yuan against one U.S. dollar, breaking the 7.4 mark and hitting a new high for the second consecutive day.
Source: Xinhua News
Xie, head of the National Bureau of Statistics, added that the monthly rate of CPI would likely linger at 6 percent or so for several months yet.
China's CPI, a major inflation measurement, hit 6.5 percent in August, 6.2 percent in September and 6.5 percent again in October, all well above the government-set alarm level of 3 percent.
Xie said the CPI rises were driven up mainly by price hikes for foodstuffs, which were mainly caused by rising production costs.
According to Xie, global price rises for crude oil fuelled price rises for industrial products. Meanwhile, price rises for nonferrous metals and iron ores also contributed to the CPI increase.
"Substantial price rises for real estate and equities translate to higher risks on economic growth in the long term," he said.
To stabilize the national economy, Xie believed, the volume of gross domestic product should be put under control and the GDP growth rate should be brought back to within 10 percent through use of both monetary and fiscal policies.
According to Xie, the Government will continue a moderately tight macro-economic policy for a short period of time to utilize monetary policies to control liquidity and to prevent credits and investment from growing too fast.
China's central bank has raised commercial banks' reserve requirement ratio nine times and interest rates five times this year.
Xie forecast China's GDP growth at 11.5 percent for the whole of this year.
He said the exchange rate of China's currency, Renminbi, should be more flexible.
On Nov. 19, Premier Wen Jiabao said at the National University of Singapore that China would continue to improve the RMB exchange rate mechanism and gradually make the RMB convertible under capital account.
Last Sunday, China's central bank governor Zhou Xiaochuan said if necessary, the nation will consider widening the yuan's trading band.
But any change in the yuan's floating band will depend on the global economic situation and it's not the only tool the country would use to make its currency more flexible, Zhou said at the Group of 20 meeting in Cape Town, South Africa.
China widened the yuan's daily trading band against the U.S. dollar from plus or minus 0.3 percent to 0.5 percent in May.
On Friday, RMB's central parity rate stood at 7.3992 yuan against one U.S. dollar, breaking the 7.4 mark and hitting a new high for the second consecutive day.
Source: Xinhua News
