8 February 2012
Last updated at 22:23 ET
Inflation hit a three-year high in July of 6.5% but had been easing since then
China’s rate of inflation unexpectedly accelerated in January for the first time since it peaked in July, as consumers raised spending around Chinese New Year.
Consumer prices rose 4.5% from a year earlier, the National Bureau of Statistics said. That compares with 4.1% in December.
Analysts were expecting prices to rise by 4.0%.
High consumer prices have threatened to derail growth in China.
Policy decision
Inflation had been easing steadily since hitting a three-year high of 6.5% in July.
Analysts said not too much should be read into the New-Year-distorted January figures.
Continue reading the main story
“Start Quote
The January inflation number will of course make policymakers wary of the risk and be more cautious in further relaxation of monetary policy”
End Quote
Shen Jianguang
Mizuho Securities
“January numbers are distorted by the Lunar New Year holiday and we need to wait until February numbers come out to make our
Read More from the Article Source: Full Article
