China Watch Blog

China Watch Blog has learnt that China’s annual GDP growth is expected to reach 9.2 percent this year and continues to experience a moderate cooling in 2012.

Shanghai airport

Expansion of the country’s industrial production in 2012 will also witness a growth pace that is one or two percentage points lower compared with this year, Huang Libin, an official at the Ministry of Industry and Information Technology, was quoted as saying in a China Daily report.

Huang expected the country’s industrial value-added output to rise by around 14 percent year-on-year this year.

Growth of exports, one of the major engines for the world’s second largest economy, may slow further next year amid sovereign-debt morass in other countries, rising protectionism and increasing pressure for the yuan to appreciate, he said.

“Although the current moderation is in line with the country’s macro-economic regulations, the trend of an acceleration in the slowdown should be monitored,” he said.

He noted that one of the government’s tasks next year should be to prevent major economic fluctuations caused by increasing uncertainties both at home and abroad.

Huang also said the timing and strength of regulations should be better tailored to prevent them having an accumulated impact on economic growth.

China Watch Blog has learnt that overall consumer prices rose 5.8% in October over the same month last year, matching September’s figure, the Census & Statistics Department said.

People, people, people in Hong Kong

Netting out the effects of the Government’s one-off relief measures, the year-on-year rate of increase in the Composite Consumer Price Index in October was 6.4%, also matching that for September.

The department said the underlying inflation rate was stable in October after its uninterrupted rise over the past year, notwithstanding the enlarged increase in private housing rents and food prices.

It said inflation is likely to peak out during the fourth quarter, as price pressures on both the external and domestic fronts are set to ease alongside the retreat of global food and commodity prices in recent months, and a slowing local economy.

On a seasonally adjusted basis, the average monthly rate of change in the Composite Consumer Price Index for August to October was 0.5%, and the corresponding rate of change for July to September was -0.6%.

Netting out the effects of the Government’s one-off relief measures, the average monthly rate of increase in the Composite Consumer Price Index for August to October was 0.5%, the same as that for July to September.

Year-on-year prices increases were recorded in October for alcohol and tobacco (19.9%), food (excluding meals bought away from home) (11.5%), housing (8.3%), meals bought away from home (6%), transport (4.8%), miscellaneous services (3.8%) and miscellaneous goods (3.1%).

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China Watch Blog has learnt that the average cost to heat your home this winter season, will increase by an average of 3% to 8%, depending on the type of fuel you use to heat your home, according to the US Energy Information Administration (EIA).

Natural Gas users will see a 3% increase on average this winter, but if you look closer, you’ll see folks in the South can expect a 10% increase in their winter heating bills according to Ted Rookstool, President and CEO of Sunheat International.

“If you are one of the over 13 million homeowners in the South who depends on natural gas for heat, expect to pay more, even if you use less,” says Rookstool. The EIA projections include an expected decrease in the use of natural gas due only to expected warmer temperatures.

For people in the Northeast you can expect close to a 5% increase in your natural gas bill and the Midwest can expect a smaller 1% increase. “The reason the overall projections are not higher is because out West the cost of natural gas is projected to decrease slightly,” states Rookstool.

Heating Oil is primarily used in the Northeast. About 80% of all heating oil sales are in this area of the country. The EIA’s short term projects states, “Residential heating oil prices to average $3.71 per gallon during the winter season, 33¢ per gallon more than last winter, and the highest average winter price on record.”

According the EIA website, if you’re one of 7 million homeowners who will depend on heating oil this winter, get ready to pay at least $193 more for heat this season. “On average Sunheat owners save $500 per season off their overall heating costs,” said Rookstool.

Propane is used by only 5% of all households for heating or just over 5.5 million homes. These propane users will pay between 5% and 10% more. The Northeast can expect more than a 10% increase in heating costs or around $250. Homeowners in the Midwest will see a modest 5% increase but once again only if they use less propane. If their volume of propane use remains the same as last year, they can expect to pay an even higher price to heat their homes,

Rookstools says, “Electricity is the only heating fuel that is expected to remain neutral or come down in cost. With an average cost of 11¢ per kwh electricity is safe, clean and efficient.”

The Original SUNHEAT makes the best use of electricity by using it to power infrared heat tubes that produce safe, soft, comfortable heat for any area of your home. You can lower your overall heating costs with The Original SUNHEAT by using less of more costly heating fuels and more of cheaper more efficient electricity.”