China has received an uphill trend in its inflation rate as it rose to 1.5 percent as compared to the previous month’s 1.4 percent. An ample of room still provided for monetary easing for the second largest economy in the world, according to official data released on Saturday.
The consumer price index was actually recorded to be lesser than in March but if we consider yearly rate, it increases 1.5 percent each year.
The National Bureau of Statistics has stated that the inflation rate has increased 1.3 percent over a period of four months in the same timeline last year. The government has exercised enough room to make monetary policies as the inflation rate registered is lower than expected.
The economy of China has grown to 7.4 percent last year, which is its lowest growth in more than two decades. The slowdown of the Chinese economy is believed to persist over a long period of time.
The CPI inflation at such levels can easily allow authorities an ample of room for monetary policy making. A slight inflation can prove to be very healthy for economics as consumers buy more before the danger of prices going up. However, growing inflation can hamper the growth of companies as they hold the purchase of a product because of the price inflation.
The analysts are of the belief that Beijing should take strong monetary measures in order to address the slowdown of the Chinese economy.
Whenever tough situations come, China fights them well and emerges out as a winner. Hence, the people of China sincerely hope that the economy would receive a heavy boost at the latter end of the year and the inflation rate would also slow down.
We will only have to wait and see how the stats of the Chinese economy move from now on.