China Inflation Slows Down

October 15, 2012 Share Print 0

Chinese consumers paid 1.9% more for goods in September than they did a year ago, the government’s National Bureau of Statistics reported Monday. That’s down from a 2% increase in August.
Food prices, which account for more than a third of the inflation calculation, rose 2.5% during the month.

Household finances in China are especially susceptible to fluctuations in food prices, as many poor families spend large percentages of their income on food.
Still, inflation remains at very low levels. As recently as one year ago, China’s consumer price index stood above 6% — well north of the government’s stated inflation rate target of 4%.
In July, officials said that annual economic growth dropped to 7.6% in the second quarter — down from 8.1% the previous quarter. The government will issue its third quarter GDP report later this week, and economists expect growth to remain well below 8%.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.