Wednesday, March 12, 2008

China money supply decline in Feb

--China's money-supply growth slowed in February. --M2, the broadest measure, rose 17.5 percent to 42.1trillion yuan ($5.9 trillion) from a year earlier, the People'sBank of China said today on its Web site. That compared with January's 18.9 percent gain and the 17.8 percent median estimateof 14 economists surveyed by Bloomberg News. --Trade surpluses and foreign direct investment pump cashinto China's economy, adding to the risk that inflation will keep accelerating. Consumer prices jumped 8.7 percent last month,the fastest pace in 11 years, on soaring food costs. --10 average growth of M2 supply is 16.28%

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