China Inflation Slow Down to 4.1%

China's inflation decrease slightly in December. This gives room for this country to re-stimulate their economy that began to slow.

This affected food prices increased sharply, where political conditions make prices become sensitive.
Reporting from the Associated Press, Thursday (01/12/2012), overall, consumer prices increase 4.1 percent, but recorded down 4.2 percent from the previous month. But still above the government's target of four percent for this year.

While the inflation of food prices increase to 9.1 percent from the previous year of 8.8 percent. Inflation rate that could clear the way for Beijing to lower interest rates or take other steps to stimulate economic growth tends to slow down. But China's leaders feel surges of food costs become barrier.

Analysts blamed the inflation is a result of the multibillion-dollar stimulus that helps China avoid a global crisis has been decreased since 2008 and continues to beat during 37 months become 6.5 percent in July.

China raised interest rates repeatedly and tightened investment in the end of 2010 and early 2011 to cool its economy which was considered too hot, but then reversed course after global exporter demands freefall.
The government has promised to lend more to help exporters and entrepreneurs, on layoffs have occurred, giving rise to potential unrest.

Increase food costs, which account for up to half of the monthly expenditures for poor families, driven by the price of pork surged 21.3 percent, and wheat prices increase 6.9 percent

Related Articles: