The People’s Bank of China assessment of the balance between deflationary and inflationary pressures appears to be on the money, based on NBS reporting on changes in the country’s consumer price index, or CPI. Therefore, neither the nation’s monetary authorities nor its fiscal authorities seem likely to be constrained by any CPI-related issues in their respective approaches to economic stimulus in the foreseeable future.
This factor is especially important with the Chinese People’s Political Consultative Conference and the National People’s Congress about to begin their annual meetings in Beijing Tuesday, as reported by the official Xinhua News Agency. To put it another way, it is entirely possible the Chinese central bank may soon have company in carrying out efforts to support the country’s economy.