摘要
TURNAROUND GAINS MOMENTUMChina＇s annual consumer inflation for January eased from a seven-month high in December, with the Consumer Price Index （CPI） falling to 2.0 percent, down from the 2.5 percent registered in December （see Chart I）. Most analysts believe that January＇s down- ward trend will prove to be temporary, and expect the country＇s inflation will pick up in coming months. The People＇s Bank of China reflected this thinking in its quarterly monetary policy report, which warned of inflationary risks due to rebounding demand, labor supply changes and global monetary easing. In contrast to the CPI chanses, factory gate prices maintained their momentum, as the Producer Price Index （PPI） fell by 1.6 percent in January, easing from December＇s 1.9 percent drop and providing another indication that China＇s economic growth is stabilizing （see Chart 2）. Wholesale prices are expected to pick up soon as warmer weather leads to more construction activity throughout the country.
TURNAROUND GAINS MOMENTUMChina＇s annual consumer inflation for January eased from a seven-month high in December, with the Consumer Price Index （CPI） falling to 2.0 percent, down from the 2.5 percent registered in December （see Chart I）. Most analysts believe that January＇s down- ward trend will prove to be temporary, and expect the country＇s inflation will pick up in coming months. The People＇s Bank of China reflected this thinking in its quarterly monetary policy report, which warned of inflationary risks due to rebounding demand, labor supply changes and global monetary easing. In contrast to the CPI chanses, factory gate prices maintained their momentum, as the Producer Price Index （PPI） fell by 1.6 percent in January, easing from December＇s 1.9 percent drop and providing another indication that China＇s economic growth is stabilizing （see Chart 2）. Wholesale prices are expected to pick up soon as warmer weather leads to more construction activity throughout the country.
