China’s gains in retail sales, consumer prices and industrial production countered the government’s assessment that the recovery isn’t “solid,” and put more pressure on policy makers to let the yuan rise.
Inflation accelerated to an annual 3.1 percent pace in May, surpassing officials’ target for the full year, retail sales gains quickened to 18.7 percent and industrial production jumped 16.5 percent, government reports showed yesterday in Beijing. The central bank said in a June 8 statement China still doesn’t have a “solid” recovery in domestic demand.
The indicators build the case for a stronger currency to help alleviate price pressures and quiet criticism that Premier Wen Jiabao’s government has a mercantilist policy that’s hurting the global recovery. American lawmakers said they’ll go ahead with legislation targeting the yuan peg just as U.S. and Chinese leaders prepare to meet at a Group of 20 summit this month.