China’s consumer prices rise to a three-year high in June as food prices soar 14.4 percent
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Monday, July 11, 2011
China’s National Bureau of Statistics released data Saturday showing that the consumer price index (CPI) for June climbed 6.4% from a year ago. That compares with a 5.5% rise in May, which was the largest since a 6.3% increase in July 2008. The major factor contributing to this figure was the steep rise in food prices which climbed 14.4%. Pork is a major food staple in China, and its price rose 65% from last year.
Analysts predicted that China’s inflation would peak in June, but particularly worrisome was the steep rise in the cost of food from the same time last year and up from 11.7% in May, indicating that Beijing may have difficulty in controlling inflation.
| We must treat stabilising overall price levels as the top priority … and keep the direction of macro-economic adjustments unchanged. | ||
China is the world’s second largest economy, having grown robustly in the last two years driven by a 2009 governmental stimulus package of $586 billion and low interest rates offered by state-owned banks. These were directed at promoting investments in real estate construction and government infrastructure projects, enabling China to lead the global recovery after the collapse of the U.S. mortgage market led to a worldwide recession.
Now Beijing is attempting to slow its fast pace of growth, fearful of inflation, by restricting bank lending and raising interest rates. High inflation along with high property values could hurt the economy. Since October, China’s Central Bank has raised interest rates five times.
Many factors are contributing to China’s inflation, including higher wages for migrant workers, increases in the prices of food and gasoline, as well as diminished output from crucial agricultural areas cause by droughts and flooding this spring.
Today, China’s Premier Wen Jiabao indicated that the war on inflation was continuing and controlling inflation was a top priority for the government, increasing expectations that interest rates would be further increased.
| If they signal any comfort with inflation, and inflation is as high as it is now, they could create an environment in which people would panic, and they can have a real problem on their hands. | ||
“We must treat stabilising overall price levels as the top priority of our macro-economic controls and keep the direction of macro-economic adjustments unchanged,” Wen said today in comments reported on the central government’s website. He had said in March that the ruling Communist Party is worried that a continuing rise in food prices could result in public protests.
Wen said the government would boost the supply of hogs to keep the price of pork stable, the price of pork being the major contributor to China’s food inflation index and the most closely watched item on it.
“If they signal any comfort with inflation, and inflation is as high as it is now, they could create an environment in which people would panic, and they can have a real problem on their hands,” said Tim Condon, Asian researcher at ING.
As markets worried about the news of Chinese inflation as well as concerns about the European debt crisis, oil dropped below US$95 a barrel today.
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31
Cathal Ryan, early board member and son of co-founder of Irish flag carrier Ryanair, dies at 48
Cathal Ryan, early board member and son of co-founder of Irish flag carrier Ryanair, dies at 48
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Friday, December 21, 2007
Cathal Ryan, an early board member of Irish non-designated flag carrier, and son of late co-founder Tony Ryan, has died. He was 48, and had been diagnosed with cancer.
Cathal bacame one of Ryanair’s first pilots, having trained as one in the 1980s in Sri Lanka, when his father set up the airline in 1985 in trust for his three sons, of which Cathal was the eldest. He left the Far East specifically to join the airline.
In 1986 he became the head of London European Airways, a business in which Ryanair had bought an 85% stake. This position, however, quickly disappeared as the carrier became Ryanair UK and was then merged entirely with Ryanair.
Over the next decade, Cathal worked both on the executive board of the airline and as a pilot, although he resigned from the latter by 1996. He remained with Ryanir until leaving the board 2002, by which time he was a multi-millionaire due to the success of the airline.
He continued to be actively involved with business ventures, taking an active role in running his family’s stud farm, as well as being a director for Irelandia, a family-owned investment company. With Irelandia he was involved in the launches of such airlines as Tiger Airways and AeroBus.
Cathal died yesterday at his home in Celbridge, Co Kildare, in the company of his children Cillian, Claudia, Danielle and Cameron, his mother Mairead and brothers Declan and Shane.
Friends and colleagues expressed surprise at his passing, commenting that at the funeral of his father, who had also been diagnosed with cancer, ten weeks previously he had “seemed fine.” Cathal had also recently begun regular trips to Italy, where he had become interested in the performing arts.
Ray MacSharry, a long-serving Ryanair director, described Cathal as “invaluable” to the air carrier’s “continuing success”. Michael O’Leary, CEO of the company, called him “one of life’s originals”.
“He was bright, charming, witty and tremendous company,” Mr O’Leary went on. “He was also an extremely skilled pilot, having become one of the youngest ever captains on the Boeing 747 aircraft, which he flew for Air Lanka in the early 1980s. Cathal’s vision, his expertise and his dedication to aircraft safety was pivotal to the development of Ryanair, and to our 22-year safety record.
“Cathal was one of Ireland’s aviation pioneers. He was a comet who shone brightly in our lives and has passed away at a tragically early age. We will all be much the poorer for the loss of his talent, his ability and his friendship,” Mr O’Leary concluded. “His vision, his expertise and his dedication to aircraft safety was pivotal to the development of Ryanair.”
His former fiance Michelle Rocca, mother of Claudia, expressed her sadness at his passing: “He was a wonderful father to Claudia; he and I had a very good relationship over the past number of years and he will be greatly missed by all of us.”
Others described him as a “well-heeled chap”, and one of the few members of Ryanair early in the airline’s history to be able to afford expensive items, such as his luxury car and his high-quality suit. Cathal’s prosperity had often helped Ryanir through financial problems in it’s early stages.
Several colleagues recalled one famous incident where airport authorities had refused to allow an aircraft he was piloting to be refueled unless it was paid for up front due to an unpaid bill. When Cathal was informed of the issue, he produced his gold credit card to pay for the fuel.