Chinese Officials Change Consumer Price Index Weighting

NTDTelevision 2011-02-23

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The Chinese regime's bureau of statistics has been the center of controversy after re-weighting its consumer price index to reduce the impact of soaring food prices. The complaints come as the country's January inflation figures came in lower than expected.

Chinese state media have played down accusations that authorities re-weighted the consumer price index to understate the country's level of inflation.

According to the Chinese regime's National Bureau of Statistics, the adjustments were a routine re-calibration.

China's inflation came in lower than expected at 4.9 per cent in January, with a large role played by soaring food prices.

The new weighting lowered the effect food prices would have on the final figure.

An official from the National Bureau of Statistics, Dong Yaxiu said it was a routine five-year adjustment.

[Dong Yaxiu, National Bureau of Statistics Official]:
"The changes in weight structure are sure to affect the total CPI. But the impact is not very big according to the calculation we have made by using the existing data, including the data for last year."

This month the Chinese regime's central bank raised interest rates for the second time in six weeks.

Beijing residents had mixed feelings over the inflation rate.

[Zhang Haitao, Beijing Resident]:
"Of course I hope price levels go down. But because my family lives in a rural area, I also hope the price level is higher and we can sell products at higher price. So it is really a double-edged sword."

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