22/Jul/2014 - Last News Update: 15:57

China inflation rate dips to a 30-month low in July

Category: Business

Published: 9th Aug 2012 03:24:00

China's inflation dipped to a 30-month low in July, giving policymakers a bigger cushion to boost stimulus measures to spur economic growth.

Consumer prices rose by 1.8% in July, from a year earlier. That was down from a 2.2% growth rate in June and a 3% rise in May.

China has been looking to spur domestic consumption amid a slowing global demand for its exports.

China's economy grew at its slowest pace in three years in second quarter.

The drop in prices of pork and meat and poultry products, which fell by 18.7% and 6.1% from a year earlier respectively, were the key drivers of the slowdown in the rate of inflation.

China's economy grew at an annual rate of 7.6% in the April to June period, down from an 8.1% expansion in the previous three months.

There are fears that growth in the world's second-largest economy may slow further in the coming months.

This number gives more room for policy easing”

As a result, Beijing has taken various measures to spur growth.

China's central bank, the People's Bank of China, has cut its key interest rates twice since the start of June. That has taken the benchmark lending rate down to 6%.

It has also cut the amount of money the country's banks must keep in reserve, effectively giving them more money to lend to consumers and businesses.

Analysts said the slowdown in the growth of consumer prices may see policymakers introduce further measures to boost growth.

"This number gives more room for policy easing," said Zhang Zhiwei, chief China economist at Nomura in Hong Kong.

He added that the rate of inflation was "likely be below the official 4% percent target for the year, so the policy focus for the government can stay clearly on growth".

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. China inflation rate dips to a 30-month low in July [Online] (Updated 9th Aug 2012)
Available at: http://www.ukwirednews.com/news/1445254/China-inflation-rate-dips-to-a-30-month-low-in-July [Accessed 22nd Jul 2014]

News In Other Categories

  • Welsh NHS: low critical care bed care warning

    Hospitals in Wales have the lowest number of beds in Europe for patients with acute life-threatening illnesses.
  • YouTube star Michelle Phan sued over copyright

    A leading YouTube entrepreneur is facing legal action for alleged copyright infringement in her videos.
  • Tatchell calls on Salmond to condemn homophobia in the Commonwealth

    Campaigner Peter Tatchell has called on First Minister Alex Salmond to condemn homophobia in some Commonwealth countries ahead of the Glasgow Games.
  • Germany and Russia's contradictory relationship

    Germany and Russia have a more complicated relationship than perhaps any other pair of countries. It is full of contradictions and tugs in different directions.
  • Bala's Welsh cake Guinness world record confirmed

    A giant Welsh cake baked in a Gwynedd town has been confirmed as the largest ever made.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com