China's economic sentiment indicator is expected to decline in the new round of growth cycle In the first quarter of 2012, and then runs smoothly in normal interval or upward sloping. In 2011 and 2012, GDP growth rate will be at about 9.3% and 8.9% respectively with the growth rate slow down. In the fourth quarter of 2011, CPI will begin the decline stage of price cycle, and may last until the third quarter of 2012. CPI increases about 5.5% in 2011, which exceeds the expected inflation target. Prices pressure in 2012 will be slowdown with the year up around 3.8%, and the probability of triggering stagflation is very small.
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