Auto sales growth in China declined in 2011, trailing sales growth in the US for the first time in 14 years, according to data from the China Association of Automobile Manufacturers. Total vehicle sales rose 2.5 percent to 18.5 million last year. US deliveries of automobiles are projected to have grown by 5.6 percent to 13.5 million last year. China remains the world’s largest automobile market. China’s government in 2010 removed a number of tax breaks and rebates that spurred auto purchases. Cities such as Beijing have also put restrictions on new vehicles.

China’s inflation declined to a 15-month low of 4.1 percent in December, suggesting that the central bank may further ease monetary policy. China’s government established a full-year inflation target of 4 percent. The average rate of inflation over the past 12 months was 5.4 percent. However food price inflation rose to 9.1 percent in December, from November’s reading of 8.8 percent. Rising food prices remains a red flag and make it unlikely that the government will dramatically shift monetary policy to spur economic growth.

China’s foreign exchange reserves declined in the fourth quarter of 2011, though they remained the world’s largest at almost USD3.2 trillion. The People’s Bank of China said that China’s foreign reserves declined about USD20.6 billion in the fourth quarter to USD3.181 trillion. However, China’s reserves increased by 11.6 percent year over year.

Russia’s prime minister Vladimir Putin said Russia’s economy grew faster than all major economies except China and India last year. Speaking at a government meeting in Moscow, Putin said that Russia’s gross domestic product grew 4.2 percent in 2011, up from growth of 4 percent in 2010. Putin said that Russia was fiscally healthy, with a federal budget surplus equal to 0.8 percent of GDP. However, he warned of high inflation, which was 6.1 percent last year.