Subscribe free to our newsletters via your
. Earth Science News .

Chinese inflation rises to 2.0 percent in November
by Staff Writers
Beijing (AFP) Dec 9, 2012

China says November industrial output up 10.1% on-year
Beijing (AFP) Dec 9, 2012 - Production at China's factories, workshops and mines rose 10.1 percent in November compared with the same month last year, data showed Sunday, a further sign of strength in the world's second largest economy.

The result, reported by the National Bureau of Statistics, was better than October's gain of 9.6 percent.

The economy grew 7.4 percent in the three months through the end of September, its weakest performance in more than three years and the seventh straight quarter of slowing expansion.

But improvements in some recent indicators such as manufacturing and trade have led to optimism that the worst of the slowdown may be over.

Also Sunday the statistics bureau said retail sales, China's main gauge of consumer spending, rose 14.9 percent year-on-year in November.

And fixed-asset investment increased 20.7 percent in the first 11 months compared with the same period last year, the bureau said.

Fixed-asset investment is a key measure of government spending on infrastructure.

China Sunday also announced its annual inflation rate increased to 2.0 percent in November from 1.7 percent in September.

China's inflation rate increased to 2.0 percent in November, official figures showed Sunday, in another sign of a continued rebound in the world's second biggest economy following a marked slowdown.

It is the first increase in the consumer price index since August and a significant leap from October, when inflation stood at a 33-month low of 1.7 percent.

But the November figure signals that inflation for the whole of 2012 will be far lower than the government's target of 4.0 percent, and will remain stable throughout 2013 as China's economy continues to expand, analysts say.

"The Chinese economy is in the sweet spot now with rebounding GDP growth, rebounding earning growth and low inflation," said Lu Ting, China economist at Bank of America Merrill Lynch.

Lu also said he expected inflation to increase to around 2.2 percent in December and forecasted a rate of 3.0 percent throughout 2013.

Ren Xianfang, senior China economist with IHS Global Insight, said the November figure does not suggest China is heading to a return to high inflation, which peaked at 6.5 percent in July 2011.

"The reacceleration in consumer price inflation, now back to the two percent territory, is sparking fears about another inflationary shock next year," Ren said.

"We believe inflation rates will pick up in 2013, but not dramatically. The price rebound going forward will be best described as a gradual end of disinflation, rather than acceleration in inflation."

Inflation became a number one issue for Beijing over the course of 2012 after it peaked last year.

China's Communist Party leaders reacted to drive down high consumer prices, which is seen as a threat to its key goal of maintaining social stability.

But the most recent National Bureau of Statistics figures suggest tackling inflation is now becoming less of an issue, analysts say.

"Bottom line is that inflation won't be the number one concern next year," said Ren.

A research note from ANZ Bank said it expected China's inflation figure will be about 2.7 percent across the whole of this year -- well below the government's target.

The November figure compares with a median 2.1 percent forecast for November in a survey of 12 economists by Dow Jones Newswires.

Food prices, which account for nearly one-third of China's CPI, rose 3.0 percent in November year-on-year, the NBS said.

Vegetable prices increased 11.3 percent year on year as cold weather disrupted supplies, according to the statistics.

Producer prices -- which measure the cost of goods as they leave factories -- declined 2.2 percent year-on-year, falling for the ninth straight month, the data showed. Producer prices fell 2.8 percent in October.

The easing of producer prices deflation is seen as a welcome sign by analysts.

"The improvement in industrial prices, which drives profit growth, will be the key foundation for continued rebound of the economy," said Ren.

The November figure was in line with the country's latest purchasing managers index (PMI), which rose to 50.6 percent in November from 50.2 percent in October. Any figure above 50 percent shows that the manufacturing sector is expanding.

China's economy grew 7.4 percent in the third quarter until the end of September, its weakest performance in more than three years and the seventh straight quarter of slowing expansion.

But recent numbers, including manufacturing, trade and industrial output, have led to optimism among economists that the world's second biggest economy is rebounding.

China is scheduled to announce industrial production, retail sales and fixed asset investment figures for November later on Sunday.


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Nobel-winners vow Europe will emerge stronger from crisis
Oslo (AFP) Dec 09, 2012
European Union leaders in Norway to collect the Nobel peace prize Sunday countered criticism of this year's award, saying Europe will emerge more united from the economic crisis and remain on a course of peace. "Europe is going through a difficult period," EU president Herman Van Rompuy told a packed news conference on the eve of the awards ceremony. "We are working hard ... We will come ... read more

UN seeks $65 mn aid as Philippines typhoon toll tops 600

Victims beg for food after deadly Philippine typhoon

Desperate Philippine typhoon victims await aid

Obama asks for $60 bn Sandy recovery package

Elbit Systems to Provide Space Camera for the Italian OPTSAT 3000 Observation Satellite

Speeding Space Junk Poses Risks for Spacecraft

Samsung, Apple top 'smart device' Q3 sales: survey

Smartphones might soon develop emotional intelligence

French move boosts shark sanctuaries

Big nations block curbs on tuna overfishing

Probiotics help fish grow up faster and healthier

Mongolian mine to affect water supply?

Clearest evidence yet of polar ice losses

Adventurer to recreate Shackleton's Antarctic exploits

Adventurer to recreate Shackleton's Antarctic exploits

Ice Sheet Loss At Both Poles Increasing, Study Finds

EU ag interests disagree on supply chain

Environmental hangover from Indonesia's palm oil thirst

Glencore gets Chinese go-ahead for 6.1bn Viterra buy

Destroy lab stocks of eradicated cattle disease: OIE

At least 13 dead after flood in Congo capital

Philippines braces for return of killer typhoon

Tsunami hits Japan after 7.3-magnitude quake

Quake toll rises to six in eastern Iran

10 dead after S. Sudan army fires on protestors: UN

African Union, Somali troops capture Islamist stronghold

President's allies keep majority in Burkina vote

Africa's vanishing savannahs threaten lions: study

Africa's Homo sapiens were the first techies

Skeletons in cave reveal Mediterranean secrets

World's tallest woman dies in China: authorities

Native Americans and Northern Europeans more closely related than previously thought

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement