e-magazine
The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Weekly Watch
Expert's View
World
Nation
Business
Finance
Market Watch
Legal-Ease
North American Report
Forum
Government Documents
Expat's Eye
Health
Science/Technology
Lifestyle
Books
Movies
Backgrounders
Special
Photo Gallery
Blogs
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Web-magazine
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue
eBeijing

ECONOMY
Weekly Watch> WEEKLY WATCH NO. 33, 2010> ECONOMY
UPDATED: August 13, 2010 NO. 33 AUGUST 19, 2010
July Economic Figures
Share

CPI and PPI

The consumer price index (CPI), a barometer of inflation, grew 3.3 percent year on year in July, 0.4 percentage points faster than in June, said the National Bureau of Statistics (NBS). This exceeded the government set 3-percent target for the entire year.

The producer price index (PPI), a measure of inflation at the wholesale level, grew 4.8 percent year on year in July, 1.6 percentage points lower than in June.

The CPI was driven by increasing food prices as heavy summer rains disrupted agricultural production across the country, said Sheng Laiyun, spokesman of the NBS . Food prices, which account for about a third of the weighting in the CPI basket, climbed 6.8 percent in July.

In addition, nationwide wage growth and price increases of commodities also spilled over into the CPI, said Sheng.

"But the situation remains manageable," he said. "With bank lending wearing off and the PPI heading south, the inflationary pressures will ease in the months to come."

Foreign trade

China's exports jumped 38.1 percent year on year to $145.52 billion in July, but the growth rate was down from June's 43.9 percent, said the General Administration of Customs.

Imports increased 22.7 percent from a year earlier to reach $116.79 billion, compared with 34.1 percent in June. The trade surplus stood at $28.7 billion, the highest level since February 2009.

Exports were stronger than expected in part because exporters rushed through deals before the export tax rebate cancellation on 406 items took effect on July 15, said Li Huiyong, a senior analyst with the Shenyin & Wanguo Securities Co. Ltd.

House prices

House prices in 70 large and medium-sized cities rose 10.3 percent year on year in July, compared with 11.4 percent in June, said the NBS. It was the third consecutive month that the prices rose at a slower pace and the lowest rate in six months.

Prices of new homes grew 12.9 percent from one year ago while second-hand home prices increased 6.7 percent.

The property fever is cooling off, but the growth rate is still more than policymakers expected, said Gu Yunchang, Deputy Director of the China Real Estate and Housing Research Association.

The current priority needs to be adhering to austerity measures and continuing to let air out of the bubble, he said.

On August 6, the China Banking Regulatory Commission reiterated its stance to tighten mortgage loans to third-home purchases. It also asked lenders to conduct stress tests for a worst-case scenario where house prices may plunge 50-60 percent in some cities.

Fixed-asset investment

The fixed-asset investment in the first seven months increased 24.9 percent from a year earlier to 11.99 trillion yuan ($1.77 trillion), according to the NBS. The investment in real estate development from January to July surged 37.2 percent to 2.39 trillion yuan ($351.5 billion).

Retail sales

NSB data also showed that the retail sales of consumer goods rose 17.9 percent year on year in July to 1.23 trillion yuan ($180.8 billion), 0.4 percentage lower than in June.

Bank lending

Newly added bank loans denominated in renminbi fell to 532.8 billion ($78.6 billion) in July from 603.4 billion yuan in June, said the People's Bank of China, the central bank.

The July figure brought new loans for the first seven months to more than 5.16 trillion yuan, accounting for 68.8 percent of the government-set target of 7.5 trillion yuan for this year.

Meanwhile, the broad money supply (M2), which covers cash in circulation and all deposits, increased 17.6 percent to 67.41 trillion yuan ($9.9 trillion) by the end of July.



 
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Most Popular
 
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved