China's CPI Hits Three-year High of 6.4% in June, Yet Inflation Won't Result in 'Hard Landing' (8.7.2011)
Of the 6.4% CPI growth in June, 3.7 percentage points were contributed by the carryovereffect of price increases last year, the NBS said in a statement on its website.The June inflation rate accelerated 0.9 percentage points from May's 5.5 percent which stoodat a 34-month high, both far exceeding the government's annual inflation control target of 4%.
China's inflation escalated to the highest level in three years amid lingering pressure, with theconsumer price index (CPI), the main gauge of inflation, jumping 6.4 percent year-on-year inJune, the National Bureau of Statistics (NBS) said Saturday.
China's current inflation is a temporary bubble, and there is no need to worry about ahard landing, said Professor Dwight H. Perkins, a Harvard economist at a world economiccongress held from Monday to Friday in Beijing.
"The inflation partially comes from outside factors, and China's central bank is doing things tocontrol money supply and inflation," Perkins said. "China's government should focus on slowingdown the economy."
Chinese Premier Wen Jiabao says stabilizing prices remains the priority for the Chinese government, highlighting concerns that inflation has not yet been sufficiently contained.
