Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

China factory-gate inflation hits 5.5%  Join our daily free Newsletter

MENAFN - Gulf Times - 10/01/2017
No. of Ratings : 0
Add to Mixx!

(MENAFN - Gulf Times) China's producer prices rose at their swiftest pace in more than five years in December, the government said yesterday, in a sign the world's biggest trader could begin exporting inflation to the global economy.
China's performance affects trade partners ranging from Australia to Zambia, many of which have for years been mired in tepid inflation which has in turn caused a drag on the global economy.
China's own firms have been battered by falling prices for their goods in the face of chronic overcapacity and weak demand, dampening growth in the world's second largest economy.
The stronger than expected producer price numbers came as a top official said that the country had likely hit its 6.7 economic growth target in 2016.
The producer price index (PPI) rose 5.5% year-on-year last month, the National Bureau of Statistics (NBS) said, far more than economists' expectations of 4.6% in a Bloomberg News survey.
It marked the fourth straight month of price rises for goods at the factory gate after years of declines, and an acceleration from the previous month's 3.3% raising expectations China's factories could put upward pressure on global prices through the supply chain.
But uncertainty hangs over the outlook as trade tensions may surge under incoming US president Donald Trump, who has promised to declare China a currency manipulator and threatened punitive tariffs on its goods.
Rising prices for industrial commodities helped support the forecast-beating PPI figures, the NBS said, as world producers cut supply.
The consumer price index (CPI), a key gauge of retail inflation, rose 2.1% year-on-year in December, slightly below expectations.
The figures were affected by warmer temperatures across China, which led to weaker-than-average price increases for fresh fruits and vegetables in the month, NBS analyst Sheng Guoqing said in a statement.
'The big picture is that consumer price inflation has moved within a narrow range around 2% over the past year and remains at a comfortable level for policymakers, Chang Liu, analyst for Capital Economics, said in a statement.

Looking ahead, inflation figures are likely to leap in January due to higher oil prices and food price increases for the Lunar New Year holiday, possibly driving the CPI to its highest level since 2013, he added.
But he noted 'the pick-up will mainly be driven by movements in commodity prices and is unlikely to be sustained.
Protracted falls in factory gate prices are a bad sign for industrial prospects and economic growth because customers delay purchases in hopes of cheaper deals in the future, starving companies of business and funds.
China's GDP expanded 6.9% in 2015 its weakest in a quarter of a century and the government had targeted growth in a range of 6.5%-7% for 2016.
But the ongoing rebound in producer prices could help boost nominal GDP growth in 2017, Zhao Yang of Nomura said in a note, though real growth 'still faces plenty of headwinds from a cooling property market and potential deleveraging in the economy.
He added that higher-than-expected inflation increases the risk of monetary tightening, limiting growth.
'We believe China is heading into a period of stagnation in 2017.
China's economy was estimated to have grown around 6.7% in 2016, the nation's top economic planner told a press conference yesterday, matching widespread expectations and annual targets even as the country enters a year of uncertainty.
Looking ahead to Trump's potential influence on the economy, Xu Shaoshi, director of the National Development and Reform Commission, said that 'over the course of rapid development, there are some differences on certain issues and some frictions on others.
The two countries should constantly seek to resolve such differences 'for the benefit of both country's peoples, and the whole world, he added.


Gulf Times

  MENA News Headlines
 Feb 22 2017 - Saudi King Meets U.S. Senator John McCainQatar News Agency
(MENAFN - Qatar News Agency) QNA) - Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud met on Tuesday with U.S. Senator John McCain. During the meeting, the two sides reviewed ...

 Feb 22 2017 - Saudi Deputy Crown Prince Meets U.S. Senator John McCainQatar News Agency
(MENAFN - Qatar News Agency) Riyadh, February 21 (QNA) - Saudi Deputy Crown Prince, Second Deputy Premier and Minister of Defense, Mohammed bin Salman bin Abdulaziz, met on Tuesday with U.S. ...

 Feb 22 2017 - Lavrov: Russia Ready to Contribute to Enhancing Security of Baltic, ArcticQatar News Agency
(MENAFN - Qatar News Agency) Moscow, February 21 (QNA) - Russian Foreign Minister Sergei Lavrov confirmed his country's readiness to participate in different initiatives for enhancing the security ...

 Feb 22 2017 - Greek President Meets Saudi FMQatar News Agency
(MENAFN - Qatar News Agency) Riyadh, February 21 (QNA) - Greek President Prokopios Pavlopoulos on Tuesday met Saudi Foreign Minister Adel bin Ahmed Al-Jubeir. During the meeting, the two sides ...

 Feb 22 2017 - U.S. Reveals New Deportation PolicyQatar News Agency
(MENAFN - Qatar News Agency) Washington, February 21 (QNA) - The U.S. Homeland Security Department on Tuesday revealed new policy guidelines for deporting undocumented immigrants, expanding the ...

 Feb 22 2017 - 2 Additional N. Koreans Identified as Being Linked to Kim Jong-nam's MurderQatar News Agency
(MENAFN - Qatar News Agency) Kuala Lumpur, February 22 (QNA) - Malaysian police said Wednesday they identified two additional North Koreans, including a diplomat, as being linked to the murder of ...

 Feb 22 2017 - South Sudan Leader Vows to Fight FamineQatar News Agency
(MENAFN - Qatar News Agency) Juba, February 22 (QNA) - South Sudan's President Salva Kiir vowed that the government would ensure that aid reaches areas hit by famine after three years of war that has ...

 Feb 22 2017 - Australian Prime Minister Meets Israeli CounterpartQatar News Agency
(MENAFN - Qatar News Agency) Canberra, February 22 (QNA) - Australian Prime Minister Malcolm Turnbull met here Wednesday with his Israeli counterpart Benjamin Netanyahu, who is the first Israeli ...

 Feb 22 2017 - Turkish Forces Kill 14 ISIS Militants in Northern SyriaQatar News Agency
(MENAFN - Qatar News Agency) Ankara, February 22 (QNA) - Turkish forces killed at least 14 ISIS militants in northern Syria in the last 24 hours, according to the Turkish military Wednesday. In a ...

 Feb 22 2017 - Sudanese President Affirms to Continue Dialogue with US on Ties NormalizationQatar News Agency
(MENAFN - Qatar News Agency) Khartoum, February 22 (QNA) - Sudan's President Omar al-Bashir affirmed on continuing the dialogue with the US administration to reach the full normalization of relations ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help