CPI increased 3.2% in the first half year

CPI increased 3.2% in the first half year
Jul 18, 2007 22:42
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	On July 19, the State Statistics Bureau released a report about the state of the economic development in the first half year. The consumer price index has increased by 3.2% than that at the same period in 2006. The GDP is 10676.8 billion Yuan in the first half of 2007, increasing 11.3% than that of 2006. The statistics show China's national economy is experiencing a sound development. Can you anticipate what is the GDP growth rate of China in 2007?

Jul 18, 2007 22:42

ZOEY
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Join Date: Nov 29, 2004
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On July 19, the State Statistics Bureau released a report about the state of the economic development in the first half year. The consumer price index has increased by 3.2% than that at the same period in 2006.
The GDP is 10676.8 billion Yuan in the first half of 2007, increasing 11.3% than that of 2006. The statistics show China's national economy is experiencing a sound development.

Can you anticipate what is the GDP growth rate of China in 2007?

Jul 18, 2007 23:04	#1
JOHNNY512 Points: Join Date: Nov 29, 2004 Status: Offline	It is said that the CPI esceeded 4 % in June. It has exceeded the fire line, 3%. Some policies may be taken to stablize the market, such as raising the interest rates or stoppping imposing the interest tax. Some people say that it will affect the stock market. Is it true? What makes the CPI increase so rapidly?

Jul 19, 2007 07:17

APAULT
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Join Date: Mar 11, 2006
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Zoey: If the CPI rose 3.2% compared with the same perod last year I think they are quoting annual figures. That is not the same as in your title which said it rose 3.2% in the first half of this year. So Johnny, I think your figure is an annualised figure too.

The GDP of 11% is above what the government wants to see so I would anticipate interest rate rises or some restrictions on certain types of investment.

The CPI rise means prices have gone up[...they can only go up if peopel have money to spend..in China there is HEAPS of spare money...seriously. people have been saving so much, especially the older people who hav ememories of no food. If they now decide to spend it...prices rise.

There are many strong pressures that may cause inflation and the governemnt is doing several things to try and prevent it... it is not easy while trying to keep the economy going.

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