China’s annual inflation rose to an eight-month high of 3.2% in October on high food prices, Reuters reported, citing official data. The scenario raises market concerns over policy tightening as factory output and investment data pointed to signs of stabilization in the economy. Inflation, which quickened slightly from 3.1% in September, was below the official target of 3.5% for 2013. “Although the CPI inflation was mainly pushed up by seasonal food demand, it may fuel market concerns that the central bank may tighten monetary conditions,” said Shenyin & Wanguo Securities economist Li Huiyong.
Categories