- There is a supply-demand recovery time lag on inflation
- As for annual reading, there is also high base effects still at play
- Has confidence to reach official growth target
- China's Q2 GDP expected to be high mainly due to base effects
He's speaking in relation to the earlier CPI report here. As much as he's trying to be optimistic, weak demand conditions are arguably a strong reason why price pressures have been soft in China. And that is something officials in Beijing have been trying to fix by cutting bank deposit rates.
