China: Inflation hits fresh high in February

11 March 2008

Beijing, China, 11 March – Consumer prices in China rose by 8.7 percent in February, the highest monthly increase for 11 years, Beijing’s National Statistics Bureau announced on Tuesday.

Meanwhile, China’s customs services said on Monday that the country’s trade surplus was only US$ 8.56 billion in February, roughly a third of the level recorded in the same month last year.

The head of the International Institute for Economic Research of the National Commission for Development and Reform, Zhang Yansheng, said the falling trade deficit was due to current global financial turmoil sparked by the sub-prime mortgage crisis.

China’s imports rose 35.1 percent in February to a value of US$ 78.81 billion while exports increased 6.5 percent to reach US$ 87.37 billion.

Beijing’s February trade surplus at US$ 19.49 billion was less than half the previous month’s and this figure has fallen in successive months since last October.

Analysts told the Xinhua news agency that heavy snows that hit southern China last month are likely to cause a drop in export production. (macauhub)