Yuan Gains for Sixth Quarter as China Seeks to Stem Inflation
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China’s yuan rose for a sixth straight quarter on speculation inflation is accelerating, spurring speculation policy makers will allow more appreciation to stem price gains.
Inflation may reach 5.3 percent for the first half and 4.9 percent for the year, the China Securities Journal reported today, citing estimates by the State Information Center. Li Daokui, an adviser to the central bank, said yesterday price increases will be relatively high in June due to the rise in the cost of agricultural products and pork. The People’s Bank of China set the yuan’s reference rate 1.3 percent stronger this quarter.