China's inflation climbed record highs in the last two months,
rising 5.6 percent in July and 6.5 percent in August.
Some securities research institutes calculated that inflation
would continue.
In a recent report Guotai Juan Securities predicted that this
round of inflation may continue into the year 2009.
"The current price rise is more driven by rising costs than by
demands," said Li Huiyong, an analyst with Shenyin and Wanguo
Securities.
Potential rises in resource prices, agricultural products and
labor costs will continue to keep the inflation index at a high
level, he said.
However, inflation will facilitate the development of the
domestic capital market as current monetary policies still lag
behind the real interest rate, Guotai Jun'an Securities said.
For more details, please read the full story in Chinese (http://www.cs.com.cn/xwzx/02/200709/t20070914_1194029.htm).
(China.org.cn September 14, 2007)
