摘要
UNEVEN ECONOMIC RECOVERYChina＇s inflation quickened to 2.4 percent year on year in April, faster than the 2.1-percent rise registered in March （see Chart 1）. However, with the CPI topping 3 percent only once since last June, inflation remains relatively tame for the time being, leaving room for policy makers to stimulate the economy if needed. In the meantime, the government will also put a renewed focus on stabilizin8 food prices, which were up 4 percent in April. Meanwhile, the Producer Price Index （PPI）, which has been declining for more than a year, fell further into negative territory in April to 1.9 percent （see Chart 2）. Downward pressure on producer prices due to weak demand amidst excess capacity is eroding the profits of Chinese manufactur- ers.
UNEVEN ECONOMIC RECOVERYChina＇s inflation quickened to 2.4 percent year on year in April, faster than the 2.1-percent rise registered in March （see Chart 1）. However, with the CPI topping 3 percent only once since last June, inflation remains relatively tame for the time being, leaving room for policy makers to stimulate the economy if needed. In the meantime, the government will also put a renewed focus on stabilizin8 food prices, which were up 4 percent in April. Meanwhile, the Producer Price Index （PPI）, which has been declining for more than a year, fell further into negative territory in April to 1.9 percent （see Chart 2）. Downward pressure on producer prices due to weak demand amidst excess capacity is eroding the profits of Chinese manufactur- ers.
