Subscribe to free Email Newsletter  
 
 
   

Inflation, wages top concerns

By Xin Zhiming (China Daily)
Updated: 2007-09-21 08:58

Inflation is expected to continue rising in the fourth quarter alongside mounting wage uncertainties, according to a central bank survey of 20,000 Chinese households last month.

Meanwhile, business leaders and bankers are growing more concerned about the economy overheating, predicting more tightening measures may be in the pipeline, according to two separate central bank surveys for the third quarter.

About 61 percent of the respondents in 50 cities across China said they expect consumer prices to rise further, according to a quarterly survey by the People's Bank of China.

The survey, published on the central bank's website yesterday, shows 47.1 percent of respondents said prices are too high, while only 3.5 percent of those surveyed believe prices are at a satisfactory level.

The consumer price index (CPI) for August accelerated to a 10-year high of 6.5 percent after it hit 5.6 percent in July. The central bank has raised the interest rate for the fifth time this year, partly to ease concern about a negative real interest rate on bank deposits.

China's CPI is set to break the 4-percent mark this year, but it's unclear how near it will get to 5 percent, said Hu Shaowei, a senior economist with the State Information Center.

"It is normal for the public to respond strongly to a survey like this," he said. "The commodities that have risen sharply affect day-to-day life."

Consumers are feeling the pinch in the latest round of price rises, in which food and grains have surged by the biggest margins.

But income prospects are adding to concerns. The income expectation index fell to 21 percent from 32.1 percent in the first quarter of the year. And 10.2 percent of those surveyed said they couldn't predict earnings for the coming quarter - the highest level in three years.

The central bank also said confidence among company executives and bankers fell in the third quarter on concern the economy may continue to boom and become overheated.



Your comments: All the comments
Comment here(Only English)    Your Name:
Top China News  
Today's Top News  
Most Commented/Read Stories in 48 Hours
   
Copyright 1995-2007. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form.
Note: Browsers with 1024*768 or higher resolution are suggested for this site.
Registration Number: 20100000002731