Price increases are a matter of perspective
CHINA - Though the consumer price index (CPI) keeps rising rapidly, the producer price index (PPI), a leading indicator of production costs, shows a declining trend. This suggests that the increase in the CPI is mainly the result of price hikes for food. The decline of the growth rate for non-food prices shows that supply and demand are stable, providing the basis for a gradual descent in prices later this year.
28 September 2007
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