China Watch Blog has learnt that China’s inflation may weaken in April, allowing more room for policy stimulus, but trade is likely to remain dim.
The Consumer Price Index, a main gauge of inflation, may rise 3.4 percent in April, Lu Zhengwei, chief economist at the Industrial Bank, said.
The Bank of Communications economist Tang Jianwei predicted a 3.3 percent increase, the Shanghai Daily reported.
The inflation rebounded more than expected to 3.6 percent in March from the 20-month low of 3.2 percent in February.
“Inflationary pressure is receding with lower global oil prices and cheaper pork,” Lu said. “This can ease worries of policymakers and allow a reserve requirement ratio cut possibly this month.”
The world’s second-largest economy still needs at least one reserve requirement ratio cut to boost liquidity and sustain growth, which showed some encouraging signs this month, analysts said.If you think China Watch Blog's information is useful, click on cup of coffee on left hand side and make a small contribution via PayPal