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Tuesday, 21 May 2013

China's inflation rate slows slightly to 3.4 pct

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Reported by: AP/UNBconnect
Reported on: May 11, 2012 09:31 AM
Reported in: Business
News - China's inflation rate slows slightly to 3.4 pct

SHANGHAI, May 11 (AP/UNB) - China's inflation rate slowed slightly to 3.4 percent in April, down from 3.6 percent a month earlier, giving the government greater leeway to ease policy to boost the economy.

The National Bureau of Statistics announced the figure Friday, which comes after China's economy grew in the first quarter by its slowest pace since 2009.

The figure also comes a day after China announced that its trade surplus widened in April as imports barely budged, sharpening fears that the world's second-biggest economy is not doing enough to stimulate domestic demand and counter a slowdown.

China grew by a still-robust 8.1 percent in the three months ending in March, down from the previous quarter's 8.9 percent, but above the government's 7.5 percent target for the year.

Growth has fallen steadily since 2010 as a slump in global demand battered its exporters and Beijing tightened lending and investment curbs to cool an overheated economy and surging inflation.

Already, there are signs that the slowdown is hurting demand for oil, industrial components and consumer goods at a time when U.S. and European growth are weak.

Last year's unexpectedly steep plunge in demand for China's exports due to U.S. and European economic woes prompted communist leaders to reverse course and ease controls on bank lending to help struggling manufacturers.

Further easing measures are expected, especially now that inflation appears to be under control, economists say.

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