Shanghai's CPI rises faster in March
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Shanghai's?consumer prices grew faster in March, which could signal more inflationary pressure, while industrial production, investment and retail sales expanded steadily, consolidating a solid recovery in the city's economy.
The city's Consumer Price Index, the main gauge of inflation, rose 2.1 percent from a year earlier last month - the fifth straight month of increase. The CPI gained 1.3 percent in February.
Food costs which surged 5.4 percent last month caused the CPI to rise faster, the Shanghai Statistics Bureau said yesterday.
The Producer Price Index, the factory-gate measurement of inflation, rose 3.3 percent on an annual basis in March, due to more costly metals and fuel products. The growth last month was the same as that in February.
"Inflationary expectations have been growing. With the costs of manufacturing materials increasing, consumer prices are under more pressure to go up," said Li Maoyu, an analyst at Changjiang Securities Co. "The decision makers may continue to tighten policies and try to keep inflation indices stable."
The city said during the annual session of the Shanghai People's Congress in January that it aims for consumer prices to rise in line with the 3 percent national goal for this year.
Industrial production in Shanghai jumped by a faster 28.2 percent from a year earlier to 235.2 billion yuan (US$34.4 billion) in March, up from the 17.5 percent growth in February.
Output by the city's six key industries - information technology, auto, refinery, fine steel, machinery equipment and biomedicine - soared 36.9 percent last month.
Fixed-asset investment in the city grew by an annual 18.3 percent in the first three months to 106.7 billion yuan. Investment in property development expanded 29.5 percent from a year earlier to 42 billion yuan, or 39.4 percent of the total FAI investment.
Retail sales in March climbed 15.5 percent to 47.4 billion yuan from a year ago in the city.
Shanghai's Economy March (y-o-y)
CPI 2.1%
PPI 3.3%
Industrial production 28.2%
Fixed-asset investment(January-March) 18.3%
Retail sales 15.5%
