China’s inflation rate rose in January, which may dash hopes that the country’s central bank will soon take more action to support economic growth there.
Consumer prices rose 4.5% over a year ago, China’s National Bureau of Statistics reported Thursday, marking a pick-up from a 4.1% inflation rate the month before.
The uptick in inflation is likely a temporary blip related to the Lunar New Year.
Prices often pick up due to heightened demand for goods and services during the holiday. Common traditions include big feasts, giving friends and family red envelopes full of cash, and a lot of travel, as migrant workers in the major cities often return to the countryside.
Just a year ago, curbing high inflation was one of the government’s top priorities. It raised lending requirements for banks and made it harder for investors to buy multiple homes — a factor that was driving up the price of real estate in big cities.
Those policies appear to have worked. Aside from January inflation has been slowing since July, when prices were up a whopping 6.5% year-over-year.
Chinese New Year makes U.S. businesses uneasy
China’s inflation rate rose in January, which may dash hopes that the country’s central bank will soon take more action to support economic growth there.
Consumer prices rose 4.5% over a year ago, China’s National Bureau of Statistics reported Thursday, marking a pick-up from a 4.1% inflation rate the month before.
The uptick in inflation is likely a temporary blip related to the Lunar New Year.
Prices often pick up due to heightened demand for goods and services during the holiday. Common traditions include big feasts, giving friends and family red envelopes full of cash, and a lot of travel, as migrant workers in the major cities often return to the countryside.
Just a year ago, curbing high inflation was one of the government’s top priorities. It raised lending requirements for banks and made it harder for investors to buy multiple homes — a factor that was driving up the price of real estate in big cities.
Those policies appear to have worked. Aside from January inflation has been slowing since July, when prices were up a whopping 6.5% year-over-year.
