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China’s economy slowed down amid inflation concerns as its GDP growth rate slid to 9.5 per cent in the second quarter from 9.7 per cent in the first, while the economy in general expanded by 9.6 per cent in the first half of this year.
China’s GDP growth rate slowed to 9.5 per cent in the second quarter of the year from 9.7 per cent in the first quarter, the National Bureau of Statistics said today.
The Gross Domestic Product (GDP) rose 9.5 per cent in the second quarter, tapering off slightly from the 9.7 per cent growth rate posted in the first quarter, the NBS spokesman, Mr Sheng Laiyun, told a press conference.
According to preliminary statistics, the country’s GDP reached 20.446 trillion yuan ($3.146 trillion) in the first six months, Mr Sheng said.
China’s economic performance was “generally good” and developed according to macro-economic regulation in the first half, he said.
China’s consumer price index (CPI), the main gauge of inflation, rose 5.4 per cent year-on-year in the first half of this year, accelerating from 5 per cent in the first quarter of this year.
Food prices, which account for nearly one-third of the basket of goods in the nation’s CPI calculation, rose 11.8 per cent in the first six months vis-a-vis the corresponding year-ago period, according to the NBS.
The figure was higher than the 11 per cent increase in the first quarter. In June, the CPI rose 6.4 per cent year-on-year, the highest level since June 2008.
Food prices, which account for nearly one-third of the basket of goods in the nation’s CPI calculation, jumped 14.4 per cent in June 2011, in comparison to the same month last year, a significant increase from 11.7 per cent in May.
Growth in non-food prices also accelerated to 3 per cent year-on-year in June, up 2.9 per cent from May.
Commenting on the rising food prices, the Chinese Premier, Mr Wen Jiabao, said the Government needs to cool down consumer prices while avoiding major fluctuations in the country’s economic growth.
“Stabilising prices remains the top priority for our macro-regulatory policies,” Mr Wen said in a statement two days ago as the Government grappled with a three-year record high inflation.
He said that a moderate monetary policy and stable supply of food are necessary to tame inflation.
He also said that measures to cool down the country’s runaway property market should be properly implemented in order to help combat inflation.
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