News / Asia

Inflation Rises in China as Economic Growth Shows Signs of Slowing

Inflation Rises in China as Economic Growth Shows Signs of Slowing
Inflation Rises in China as Economic Growth Shows Signs of Slowing
Peter Simpson

China's inflation rate has increased beyond government targets as the country's economic growth slowed last month. The National Bureau of Statistics said Friday the annual rate of inflation rose to 3.1 percent in May - up from April's figure of 2.8 percent. The May rate exceeds the government's 3 percent target for price increases this year.

Also in May, China's rebound from the global slump slowed, with growth in factory output and investments easing moderately.

Any slowdown in the economy produces risks for the government as it attempts to keep growth on track, to provide jobs. At the same time, Beijing needs to avoid having the economy grow too rapidly, which can cause prices to rise for key items such as food and housing.

The May figures expose growing concern within the government over how to control rising inflation in a highly complex economy said Tom Miller with the economic and research consultants GaveKal Dragonomics in Beijing.

Miller said the figures may not capture the true inflationary pressure in the economy, adding that price increases have yet to peak.

"The reasons for this is that you have had this enormous monetary stimulus and there's loads and loads of liquidity sloshing about in the economy," said Miller. "And you expect inflation to be rising and you'd expect it to hit its peak this year in about three or four months time."

To protect the economy from the worst of the global financial crisis over the past two years, Beijing's created a $586 billion spending plan, and loosened monetary policy. Some economists expect China's economy to slow as the initial impact of the stimulus wanes.

But the risk of rising inflation has prompted concern that Beijing might increase interest rates or take other steps to ease economic growth, which hit 11.9 percent in the first quarter. The government already is trying to ease the booming the housing market by tightening access to credit.

Such steps could affect the United States, Europe and others that look to China - the world's third biggest economy - to help drive global demand for exports.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid