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A flood of bank lending in recent years has been one factor driving up consumer prices, which rose 6.4% in June, their fastest pace in three years.
The April-June figure was down from nearly $200 billion in both the first quarter and the fourth quarter last year. UBS economist Wang Tao said the slow down in foreign reserve accumulation was likely due to less inflows of speculative capital. She estimated that such inflows fell to around $24 billion,from around $90 billion in the last two quarters.
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