Numbers of the Week

147

The number of Chinese centrally administered state-owned enterprises dropped to 147 from 149 as of September 10, according to the State-owned Asset Supervision and Administration Commission.

345 billion yuan

China's software industry reported total revenue of 345 billion yuan ($50.4 billion) in the first half of this year, a 30-percent increase year on year.

TO THE POINT: The country's economic data for August indicated a slowdown in certain sectors, especially in the real estate industry. Weakening inflationary pressure prompted policymakers to loosen credit controls. The government allowed commercial banks to grant more loans to small and medium-sized enterprises. An unexpected rebound in the trade surplus could indicate shrinking Chinese demand for international products. Auto sales in August kept falling because of rising fuel prices and lower demand. By LIU YUNYUN

Major Economic Figures In August

CPI up 4.9 percent

China's inflation worries were alleviated in August, giving the government more room for policy readjustments.

The consumer price index (CPI), a barometer for inflation, grew 4.9 percent in August compared with the same month last year, and the growth rate slowed down compared with the 6.3-percent growth in July. In the meantime, the CPI dropped 0.1 percentage point from July, implying easing inflationary pressure.

In the first eight months, China's CPI grew 7.3 percent over the same period last year. Normally, a CPI growth of more than 3 percent indicates inflation.

Yao Jingyuan, Chief Economist at the National Bureau of Statistics (NBS), said at a press conference that the government's measures to alleviate inflation were effective. He attributed the CPI decline to lower food prices.

Food prices, which make up one third of the CPI calculation and are a major catalyst for this round of inflation, rose 10.3 percent in August year on year, which was 4.1 percentage points lower than in July.

As the inflation barometer was entering a safe zone, worries of an economic downturn arose. Tao Dong, Chief Economist at Credit Suisse First Boston Asia, said mainland economic activities were turning from a period of bold expansion to relative stringency, because companies were becoming more cautious and conservative about expanding their businesses. He also said the government should come up with a package of policies to stimulate economic growth. He also said the mainland's economic growth might drop below 9 percent this year.

PPI up 10.1 percent

When China's consumer prices showed signs of falling, producer prices for industrial products climbed to record highs.

The producer price index (PPI), a gauge for inflation at the wholesale level, measures the value of finished products when they leave the factory. In August, the PPI soared 10.1 percent-its biggest jump since 1996.

Prices for raw materials, fuel and power jumped 15.3 percent year on year in August and were the biggest trigger of the PPI surge. Merrill Lynch & Co. said in a report that PPI inflation picked up because hikes in fuel prices (from June 20) and power rates (from July 1) seeped into manufactured goods. Coal prices continued to rise in August.