China’s inflation may have accelerated to 5.1 percent in November, the fastest pace since July 2008, according to two Chinese newspaper reports today ahead of the release of the data tomorrow.
The Economic Information Daily didn’t say where it got the information. The 21st Century Business Herald cited an estimate from Li Huiyong, an analyst at Shenyin & Wanguo Securities Co.
The reported pace would top the median 4.7 percent forecast in a Bloomberg News survey of economists and bolster the case for the central bank to raise interest rates. Societe Generale SA said yesterday that the statistics bureau’s decision to release economic data tomorrow instead of Dec. 13 may signal an imminent rate-increase.
China has raised interest rates once this year, ratcheted up banks’ reserve ratios and announced measures including possible price controls to tame inflation after the economy rebounded. A record expansion in credit has added to the risk of inflation spiraling out of control.
The key one-year lending rate is 5.56 percent. The deposit rate is 2.5 percent.