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Chinanews, Beijing, Sept 29 – The National Statistics Bureau issued a report on macro economy indexes on Thursday. The report shows that last August, CPI and industrial production continued to increase. These key economic indexes have now touched the yellow alert point for the first time this year, indicating that Chinese economy has a tendency to become overheated, the Beijing Morning Post reported.
The macro economy indexes are used to indicate the current economic status. The pre-warning indexes, an important part of the macro economic indexes system, tell whether the current economy is overheated or in a normal range. The economic status is often marked in a green, yellow or red color in order to help people see more clearly. The report shows that in August, the pre-warning indexes reached 120.7, increasing by 7.40 points from July. Economic performance has passed through the yellow alert line, indicating that the economy has become overheated. Of the ten indexes included in the pre-warning indexes system, people's per capita disposable income, industrial production, industrial enterprises profits and CPI figures were all placed on the yellow alert. In addition, the "fiscal1 income index" has been placed on the red alert for four consecutive2 months. “Over the past few months, both CPI and industrial added value have increased substantially, directly affecting the macro economic performance,” said Chen Jijun, an economist3 at CITIC Securities Company Limited. He predicted that the major economic indexes might further touch a high point in September. As a result, macro economic status might remain high in the third quarter. Despite this, Chen said major economic indexes were still at a controllable level. “In order to stabilize4 commodity prices and loan release, the government will, in addition to implementing5 the existing policies, further raise the interest rates this year,” Chen noted6.
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