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SHANGHAI - CHINA'S inflation rate, which soared to its highest level in over 11 years in January, is expected to slow down in the second half of the year, state media reported on Wednesday.
The consumer price index, the main inflation gauge, will ease as the government's macroeconomic measures kick in, the People's Daily reported, citing Yao Jingyuan, chief economist with the National Bureau of Statistics.
The remarks came as figures released on Tuesday showed growth in consumer prices spiked to 7.1 per cent in January, up from the 6.5 per cent in December and the highest since September 1996, when the index rose 7.4 per cent.
Mr Yao said the high inflation last month was mainly due to seasonal factors such as the Lunar New Year, when prices traditionally rise, and heavy snow storms this winter destroying crops and disrupt power and transport networks.
Some analysts believed the central bank, struggling to tame galloping inflation through 2007, was now left with few options after it raised interest rates six times last year and increased the amount of money commercial banks needed to set aside in reserves 10 times. -- AFP
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