Eagle Summit Corporation Prepared As China Set to Dampen Commodity Prices
Maintaining price stability had always been a priority of China's economic development as excessive increases in consumer prices would not only affect people's lives, but also disrupt social stability, he said.
- (1888PressRelease) March 11, 2011 - Chinese Premier Wen Jiabao recently announced that he would not allow consumer prices to rise unchecked. Premier Wen made the remarks in an on-line chat with the public when answering questions concerning rising prices.
Maintaining price stability had always been a priority of China's economic development as excessive increases in consumer prices would not only affect people's lives, but also disrupt social stability, he said. China's consumer price index (CPI), a major gauge of inflation, rose 4.9% in January from a year earlier as food prices increased 10.3% due to rising demand and a drought in grain-growing regions.
The CPI rose by 4.6% in December and 5.1% in November, a 28 month high. Rising food prices, and other commodities have pushed price pressures that pose growing risks to the economy. Government departments have undertaken a slew of measures to keep prices in check. The People's Bank of China, the central bank, shifted to a more pragmatic monetary policy from the previous loose policy late last year.
To draw off excess liquidity, the central bank has lifted the reserve requirement ratio for commercial banks eight times since last year, and hiked the Key interest rates three times. Premier Wen expressed his confidence in these measures curbing inflation.
Eagle Summit Corporation is extensively involved in Asian commodity markets and continues to monitor these efforts closely.
-About Eagle Summit Corporation-
Founded in 2005 and based in Cyprus, the goal at Eagle Summit Corp is a simple one: to work with talented entrepreneurs and management teams to develop ground-breaking products and build substantial business enterprises around them. We have raised a series of partnerships, with current committed capital in excess of $450 million, and helped build hundreds of companies, 60 of which have gone on to successful IPOs and more than 45 of which have gone on to successful mergers.
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