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Consumer prices continue to surge in China
BEIJING.. Oct 18: Despite government efforts to hold down inflatiori, consumer prices in China continued to surge in September according to official statistics released Tuesday, reports AP.
Economic growth, meanwhile. was 11.4 per cent for the January- September period compared with the same period last year, the State Statistics Bureau reported. That was down from an annual growth rate of 13 per cent In the past two years.
• Much of the report for the first nine months of the year was upbeat. Personal Income and ban savings deposits have Increased.1 bureau spokesman Qiu Xiaohuh said.
But rising prices were a key problem. Qiu said he was "not optimistic'' that pricbs would go down in the near term, and said the government needed to. adopt measures to curb "unreasonable" increase.
Nationwide, the consumer price index, a major indicator of inflation, was up 27.4 per cent In September compared with September last year. In
August the year-to-year Increase had been 25.8 per cent.
The consumer price Index for the January-September pe riod was up 23.3 per cent over the same period last year.
Holding down inflation has been named the government's No.l economic priority this year. China's leaders fear skyrocketing prices could lead to social instability.
Problems contributing to high inflation included severe floods and- droughts that cut agricultural production and losses by state-owped enterprises. Qiu said.
In addition. China is shifting from a planned economy to a market economy, and price fluctuations can be expected In the transition period, he said.
Capital investment by staterun enterprises rose 43.9 per cent to 586 billion yuan (68.7 billion dollar) in the first nine months compared with the same period last year.
Qiu said bank credit in the nine-month period was within the state plan,
China has tightened credit in. order to'slow the flow of
funds to inefficient state enterprises.
Nearly half of China s state-owned enterprises and losing money despite infusions of government cash. State-owned enterprises last year accounted for about 50 per cent pf China's Industrial output.
"Generally speaking, the production of state-owner, enterprises is turning for the better month by month." Qiu said. Losses were down slightly. by 1.8 percentage points. in the nine-month period, he said.
The losses mainly occurred In the machinery, textiles, defense and coal industries. Qiu said. .
The statistics also showed people in China were earning more and buying more.
Total retail sales volume increased 28.3 per cent to 1.1 trillion yuan (130 billion dollars) In the nine-month period over the same period of 1993.
The national retail price Index rose 24.6 per, cent. in September from September 1993 and was up 20.9 per cent in the first three quarters.