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Prices to keep growing, rate to slow [Copy link] 中文

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Post time 2008-1-23 09:46:48 |Display all floors
(China Daily)
Updated: 2008-01-23 08:06

Prices of consumer goods will continue to rise but at a slower rate, a top official said yesterday.

"The growth momentum of overall prices will gradually ease," Zhu Xiaoliang, deputy head of the Ministry of Commerce's department of market operation regulation, said during an interview broadcast live online.

He vowed the ministry will ensure adequate supplies of major food products such as meat and vegetables, to stabilize prices during the upcoming Spring Festival holidays.

The ministry is analyzing the price trends of about 600 consumer goods in the first half of the year. Preliminary results show most of them are in oversupply or at balanced supply-demand levels, Zhu said.

However, the rising costs of labor, land and raw materials will increase pressure on overall price levels in the first half of the year, he said.

China has been battling fast-rising prices for the past year, with the consumer price index (CPI), a bellwether of inflation, at 6.9 percent in November, an 11-year high.

It was the fourth consecutive month the index exceeded 6 percent.

Analysts expect CPI figures for December, due for release tomorrow, to be about 6 percent.

"The ministry's view is in line with market trends," Zhu Baoliang, a senior economist with the State Information Center (SIC), said.

Hikes in food prices, which account for a third of the CPI basket, are seen as the main contributor to the exceptional CPI growth, he said.

"The cost of services such as electricity and property rents also drive the index," he said.

Food prices have remained high in recent months but they will not continue to rise at such a fast rate, he said.

"This will help stabilize overall prices."

Zhu from the Ministry of Commerce said the price of pork will continue to rise as the cost of pig breeding remains high. Prices of vegetables and flour have also been rising recently because unfavorable weather conditions have hindered their transportation and reduced the supply.

The price of cooking oil will continue to go up because of the high cost of soybean and rising prices on the international market, he said.

"In the coming months, domestic cooking oil prices will run at high levels, but supply will be sufficient to meet demand," Zhu said.

Last week, the central government launched a number of temporary interventionist measures to control prices of several staples such as grain and meat.

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Post time 2008-1-23 09:50:08 |Display all floors

Reply #1 voice_cd's post

Here's hoping that these measures alleviate the pressure on the overburdened lower income earners who make up the vast majority of consumers in China. How can they (China) hope to create a vibrant domestic consumer market with inflation such as it is, when the vast majority of folks have to spend most of their income on housing, education, healthcare and food? Beats me I tellya!

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Post time 2008-1-23 10:58:58 |Display all floors

not good not bad

it's not good news, the employees' salary rate will not grow at the same speed ,
agood news is that the minitry of labor is now considering putting consumer index into wages which is a great progress in chinese labor market
also it's not too bad ,as the growth rate is to slow down
at  least i hope the economy will grow steadily ,create more jobs
The Sun rises every day from the East !

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Post time 2008-1-23 11:23:27 |Display all floors
I think this is a good news, at present the price of real estate is down slowly on the place I live in, about 400-500RMB/square meter. But in another word, the demand for buying the house is great in market, so the price can never come back to the level before past five years. Maybe the price will stay on a point and never change.
Foreign money pouring into china's real estate is one of allover reasons, plus international trade surplus, and CN dollar has been rising. So one day I hope that we, chinese all can buy houses in USA, EU and Japan, have a trip outside.

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Post time 2008-1-23 16:51:47 |Display all floors
It is a good news or not, I don't know.
If the prices kept growing and the salary remains the same level, that means we are getting poor.

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Post time 2008-1-23 17:34:27 |Display all floors

bad news

i hope one day the price goes down
Angie SHI

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Post time 2008-1-23 21:44:16 |Display all floors

to me,bad news

to me ,it is a bad news,because my salary didn't rise as  the same rate

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