Worries over inflation see no easing
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Consumer confidence in Shanghai's economy rebounded in the first quarter of this year as the city grew solidly but concerns over inflation did not ease, a survey showed Tuesday.
The Shanghai Consumer Confidence Index rose to 106.0 in the first three months, up from 102.3 in the previous quarter which marked a one-year low, according to a quarterly survey by the Shanghai University of Finance and Economics.
An index reading above 100 signals consumers are positive about the economy while one below that implies the opposite.
Xu Guoxiang, the research program leader and director of the university's Applied Statistics Research Center, said people became more worried, not less, over inflation despite a higher confidence reading.
"Prospects of more interest rate increases, rising consumer prices and growing difficulties to invest in property signal the rebound to be not particularly strong," Xu said.
The survey found 71.2 percent of the respondents expected prices to rise in the future six months, while 23.9 percent said prices may not change much.
Shanghai's Consumer Price Index grew 4.7 percent from a year earlier in February, up from January's 4.3 percent and December's 4.5 percent. Analysts have forecast the CPI may climb even more in March.
