SHANGHAI, Oct. 17 (SMM) -- According to China’s National Bureau of Statistics, China’s September CPI rose by 6.1% YoY, down slightly MoM, while the Producer Price Index was up 6.5% YoY, also down MoM, a sign that China has achieved initial success in curbing inflation. Steelease predicts domestic CPI growth will continue to slow gradually over the next several months, and will be about 5.6% through the whole year 2011.

China has implemented tightening monetary policy for one year since October 19th, 2010, and China’s central bank raised reserve requirement ratio for six times in 1H 2011, which exerted great impact on enterprises in iron and steel industry, even on the whole real economy. Since China has achieved initial success in curbing inflation, Steelease believes China will not introduce stricter tightening policy over the next few months, but will also unlikely ease monetary policy in the short term given that CPI data remains high.