ID :
169144
Fri, 03/18/2011 - 08:58
Auther :

China's inflation to rise 5.1 pct this month: Morgan Stanley

By Kim Young-gyo
HONG KONG, March 18 (Yonhap) -- China's inflation will likely grow 5.1 percent this month from a year ago, Morgan Stanley said Friday, suggesting the country's inflationary pressure is still high.
Wang Qing, chief China economist for the U.S. investment company, estimated that the consumer price index (CPI) will accelerate in March from the previous month due to rising food prices.
China's National Bureau of Statistics said last week the main gauge of inflation rose 4.9 percent from the same month in 2010, remaining high despite the government's tightening measures.
Qing said in a report that China's inflation will be more severe in the coming months as international commodity prices are rising fast.
"Inflation remains at an elevated level and it has not peaked yet," he said, forecasting inflation will rebound around May and peak in the middle of the year.
The Chinese government has been tightening its monetary policy in a bid to ease persisting inflationary pressure in the country.
The People's Bank of China raised the deposit reserve requirement ratio last month for its major banks for the second time this year. Since late October, China has adjusted banks' reserve ratios four times as the world's second-largest economy grapples with surging inflation.
Meanwhile, Wang expected the Chinese currency will continue to rise against the U.S. dollar, as the government is likely to allow the yuan's appreciation in a bid to keep high import prices from stoking inflation.
ygkim@yna.co.kr

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