China's consumer price index up 1% in July
By Sun Min (China Daily)
Updated: 2006-08-12 09:22
For example, the producer price of crude oil surged 26.6 per cent
year-on-year in July, while petrol, kerosene and diesel climbed 25.4 per cent,
27 per cent and 21.2 per cent respectively in the month.
Strong demand
also pushed up the purchase price of fuel, nonferrous metals and chemicals,
which rallied 13.1 per cent, 37.2 per cent and 2.2 per cent
respectively.
The PPI growth means that the prices of most of the raw
materials, especially fuel and power, were still growing at a rapid pace, though
some also reported a moderate decrease, said Zhu.
And this trend is
likely to be maintained in the short term, he said, adding that this may require
the authorities to come up with more tightening measures to cool down the
economy.
Earlier this week, in a monetary policy report issued by the
central bank, the authorities clearly stated its concern on the potential
overheating of the economy, given the fast economic growth and strong investment
desire in spite of the tightening policy.
It also said inflationary
pressure is mounting.
China's economic growth reached 10.3 per cent in
the first half of the year. The central bank report said growth is likely to
slow down in the second half of the year but will remain fast.
Food
prices may decline further due to sufficient supply and could further weigh down
CPI growth in the coming months, but the prices of assets and services are still
expected to rise, increasing inflationary pressures.
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