BEIJING (AP) — China's inflation eased in January ahead of the Lunar New Year holiday but vegetable prices spiked higher amid unusually cold weather, data showed Friday.
Consumer prices rose 2 percent over a year earlier, down from the previous month's 2.5 percent gain, the government reported. The decline came despite a 37 percent jump in vegetable prices.
The January decline was due in part to comparison with the same month last year, when food prices spiked up as families stocked up for Lunar New Year banquets. This year's holiday doesn't begin until this month.
Higher pressures for prices to rise have prompted some analysts to suggest Beijing will respond by tightening credit, possibly complicating efforts to support China's shaky economic recovery.
Economic growth ticked up in the final quarter of 2012 but analysts say a recovery could be vulnerable if trade declines or the government fails to support investment spending that is propping up the rebound.
Food prices have been pushed up by the coldest winter in seven years, which damaged vegetable crops. The government said vegetable prices in some areas rose as much as 74.6 percent in January compared with a year earlier.
National Bureau of Statistics (in Chinese): www.stats.gov.cn
“Walking Dead” mid-season finale grumble thread: So many grumbles
State Department: Iran Never Signed Nuclear Deal, Which Isn't 'Legally Binding'
NRA Thanks Obama For Signing Pro-Gun Legislation - Bearing Arms - Barack Obama, National Defense Authorization Act
Media Smear Ted Cruz: He Did Not Claim Robert Dear Is A Transgendered Leftist Activist | RedState
CBS News calls Planned Parenthood videos 'now discredited'
Marita Noon - Why is Obama lying on climate change?
George Soros: Top 10 Reasons He Is Dangerous | Human Events