Inflation picks up pace in April as overheating threat intensifies

Chinese economic data released Tuesday highlighted the threat of overheating in the economy, as inflation accelerated, property prices rose by a record amount and new lending increased in April, the Wall Street Journal reported. The consumer price index (CPI) rose 2.8% from a year earlier, picking up from March’s 2.4% rise, while the producer price index rose 6.8% compared to 5.9% in March. New lending in April surged to US$113 billion, up from US$ 74 billion in March, according to the People’s Bank of China. Economists are concerned about rising inflationary pressures in China, but many do not expect the central bank to start raising interest rates until the CPI hits or exceeds Beijing’s full-year target of a 3% rise. Interest rates haven’t altered since they were cut in December 2008. Urban fixed-asset investment increased 26.1% between January and April, slowing slightly from the 26.4% growth in the January-March period. Retail sales in April rose 18.5% year-on-year, up from 18% in March.