China Inflation Rate Eases in April

Inflation in China eased slightly in April from March's 32-month high, but still remained above the government's full year target of 4 percent., RTT News 5/11/2011 11:44:56 AM

Food prices went up 11.5 percent from last year, while non-food prices increased 2.7 percent. On a monthly basis, the consumer price index edged up 0.1 percent.

Inflation has been a pressing issue for China these days and the government has assigned top priority to measures to curb inflation and prevent overheating of the economy. Since October last year, the central bank raised key interest rates four times to rein in inflation.

It also raised the reserve requirement ratio for banks as many times this year, taking the rate to an all time high of 20.5 percent.

Earlier, central bank governor Zhou Xiaochuan had signaled further policy tightening in the coming months, while Deputy Governor Yi Gang said that inflation is likely to ease in the second half of this year.

Producer price inflation slowed to 6.8 percent from 7.3 percent in the previous month. It was also below the 7 percent expected. In April, the purchasing costs for industrial producers increased 10.4 year-on-year.

China Inflation Rate Eases in April