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MNI BRIEF: China Inflation Unlikely To Constrain Policy Easing

MNI (Singapore)

China’s prices may continue to expand at a quicker pace in the second half of the year amid imported inflation and higher pork prices, but it is unlikely to constrain monetary easing as annual CPI is seen well below the government-set 3% ceiling, said Sheng Songcheng, a former director of the Statistics and Analysis Department of the People's Bank of China.

Beijing should keep its monetary and fiscal policies relatively loose to consolidate the positive recovery momentum appearing since June, while prices generally will not become a constraint, said Sheng during the Caixin Summer Summit on Saturday. SEE: MNI BRIEF: China June CPI At Near 2-Yr High, PPI Over 1-Yr Low

China would require certain GDP growth to stabilize the job market, and boosting infrastructure investment should be the main driver this year, said Sheng, who also predicts property investment could reverse declines in H2.


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