China's consumer price index (CPI) is expected to climb 2.3
percent year-on-year this year, according to a report by the
central bank.
The index, a major gauge of inflation, is projected to rise 2.35
percent, 2.25 percent, 2.50 percent and 1.90 percent in the four
quarters of the year, said a report from the Research Bureau of the
People's Bank of China.
The report said factors including rising crude oil and metal
prices, small grain price hikes, and deepening pricing system
reforms of resources such as water, coal and electricity are
expected to drive inflation higher.
It said more measures to curb excessive liquidity are needed to
help maintain stable prices.
China's CPI stood at 1.5 percent for the whole of 2006, but it
reached 2.8 percent in December alone, the highest increase in 22
months. The index was up 2.2 percent in January and 2.7 percent in
February.
China wants to limit inflation to 3.0 percent in 2007, according
to the government work report delivered by Premier Wen Jiabao
earlier this month.
The central bank raised one-year benchmark interest rates by
0.27 percentage points on March 18 to view of ominous inflationary
trends.
The report also said China's gross domestic product will grow
10.0 percent this year. The country's economy surged 10.7 percent
last year, the fourth consecutive year of double-digit growth.
The State Information Center predicted in a separate report that
the country's GDP will rise around 11 percent in the first quarter
of this year.
The Asian Development Bank said in a report on Tuesday that
China's GDP was projected to grow 10 percent and inflation 1.8
percent year-on-year in 2007.
(Xinhua News Agency March 30, 2007)