Q & A: All Very Stable

China’s inflation and industrial production exceeded forecasts in February, underscoring the challenge for Premier Wen Jiabao as he seeks to prevent price increases from stirring social unrest,

Bloomberg reports.

Both China Central Bank’s (People’s Bank of China) governor Zhou Xiaochuan and a CCTV reporter asking Zhou a question on today’s 15th press conference during the 4th Plenary Session of the 11th National People’s Congress seemed to take a much more sanguine view.

Another number released today says that the CPI (consumer price index) reached 4.9 percent in February, which is basically stable compared with January, the CCTV newsman suggested in his question, which was actually about if a one-time big adjustment in exchange-rate reforms (i. e. a major appreciation of China’s currency) was to be expected.

And answering a Phoenix TV reporter’s question after CCTV’s, it was then Zhou himself who suggested that while the December, January and February levels had been quite high, inflation expectations were now comparatively stable, after all (如果我们观察12月、1月、2月CPI的数字,虽然还是在高位运行,但是通货膨胀预期目前相对比较平稳).

The way the CPI has been calculated since the beginning of this year had been debated – and questioned – in February.

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