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Food Prices Boost Inflation in China

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China’s inflation rose to a five-month high of 2.5 percent in May, driven by higher food prices, government data showed Tuesday.

Inflation still is below the ruling Communist Party’s 3.5 percent target for the year, leaving room for interest rate cuts or other measures to stimulate the slowing economy if needed.

May inflation was up from the previous month’s 1.8 percent, boosted by a 4.1 percent rise in food prices.

“We don’t expect inflation to get out of hand this year,” said Julian Evans-Pritchard of Capital Economics in a report.

Economic growth slowed to 7.4 percent in the three months ended March 31 from the previous quarter’s 7.7 percent.

Other indicators suggest growth might slow still further in the current quarter.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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