China consumer inflation edges up in April
Moving too fast with tightening policies could threaten China’s economic pick up
April consumer inflation rose by 1.2%, slightly above estimates from economists polled by the Wall Street Journal. Producer prices decelerated for a second-straight month, growing 6.4%, down from March’s 7.6%. Though the CPI edged up, it remained relatively weak.
Amid concerns of property speculation and excessive debt, Beijing has tightened short-term interest rates in the interbank market and nonbanking corners of China’s financial system. Some warn that moving too fast with tightening policy could put a damper on the economic pick up.
“The real economy is still quite weak” and “already past its peak for this year,” the Wall Street Journal quoted economist Larry Hu of Macquarie Group as saying.