BEIJING (XFN-ASIA) - Goldman Sachs said it expects China's consumer price index (CPI) inflation for November to reach a decade-high 6.7 pct year-on-year.
China's CPI growth has topped six pct over the past three months, reaching highs of 6.5 pct in both August and October.
China is due to announce key November indicators, including CPI, next week.
In a note, Goldman Sachs (nyse: GS - news - people ) said it expects producer price index growth to accelerate to 3.5 pct on the back of higher prices of oil, steel and coal.
China's October PPI was up 3.2 pct year-on-year.
Meanwhile, Goldman Sachs said it expects export growth to hold up, with the trade surplus likely to hit a new record of 27.5 bln usd.
Industrial production growth is forecast to rebound to 19 pct, but fixed-asset investment growth is likely to ease due to the disappearance of low base effects, Goldman Sachs said.
Retail sales growth is forecast to remain steady amid continued strength in income growth, it added.
Growth rates of loans and money supply are likely to see visible deceleration, the note said.
Goldman Sachs added that Chinese authorities are likely to maintain their tightening stance, with one more hike in benchmark interest rates seen before the end of the year.
The central bank is also expected to allow the yuan to appreciate at a faster rate.
Wednesday, December 5, 2007
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