China's capital goods prices to remain high in fourth quarter
Thursday, 25 October 2007
BEIJING, Oct 24 (Xinhua): China's capital goods prices will maintain a high level in the fourth quarter this year, driving the annual rise in prices of capital goods in distribution to four per cent, according to the National Development and Reform Commission (NDRC).
The monthly rise in capital goods prices dipped to 0.7 per cent in June but it rebounded over the next three months to settle at four per cent in September.
Prices of capital goods in distribution rose 3.6 per cent in the first nine months, 1.1 percentage points higher compared with the same period of last year.
Price hikes of steel and cement from January to September were below the rising capital goods prices, said the NDRC report.
Strong demand on the international market was driving up the steel prices and the domestic demand for steel and cement was solidly backed up by increasing fixed assets investment, according to the report.
It said the rising trend of capital goods prices was likely to continue into the fourth quarter.
Analysts said rising producer prices had driven up consumer prices.
China's consumer price index (CPI), a major barometer for inflation, eased slightly in September, but the country remains under great pressure to tame the figure.
The CPI would rise 4.3 per cent for the whole of this year, exceeding the government-set alarm level of three per cent, Wang Xiaoguang of the NDRC predicted yesterday.
China's steel prices kept at a high level in the July-August period of this year after correction in the previous two months. The average price of screw steel is now more than 4,000 yuan per ton, and that of H-shape steel is approaching to 5,000 yuan per ton, both of which are close to record high price in the country.
The monthly rise in capital goods prices dipped to 0.7 per cent in June but it rebounded over the next three months to settle at four per cent in September.
Prices of capital goods in distribution rose 3.6 per cent in the first nine months, 1.1 percentage points higher compared with the same period of last year.
Price hikes of steel and cement from January to September were below the rising capital goods prices, said the NDRC report.
Strong demand on the international market was driving up the steel prices and the domestic demand for steel and cement was solidly backed up by increasing fixed assets investment, according to the report.
It said the rising trend of capital goods prices was likely to continue into the fourth quarter.
Analysts said rising producer prices had driven up consumer prices.
China's consumer price index (CPI), a major barometer for inflation, eased slightly in September, but the country remains under great pressure to tame the figure.
The CPI would rise 4.3 per cent for the whole of this year, exceeding the government-set alarm level of three per cent, Wang Xiaoguang of the NDRC predicted yesterday.
China's steel prices kept at a high level in the July-August period of this year after correction in the previous two months. The average price of screw steel is now more than 4,000 yuan per ton, and that of H-shape steel is approaching to 5,000 yuan per ton, both of which are close to record high price in the country.