China’s soaring economic recovery boasting a 10.7 percent rise in GDP in the fourth quarter has set its wheels in motion for becoming the world’s second-biggest economy after the US by later this year. But the boom has economists urging Beijing to adjust its policies in order to control inflation in the coming months, The Wall Street Journal reported.
According to Bloomberg, policymakers have set managing inflation expectation as one of the government’s central objectives since inflation accelerated to an unexpected 1.9 percent in December. The Wall Street Journal reported today that two key price gauging indicators, consumer prices and producer prices, also rose significantly in December. A Bloomberg News survey of economists indicated that the government is likely to act immediately to contain prices.
Officials will also allow the yuan to appreciate, expecting an increase of about 3 percent against the dollar by the end of the year.
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