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China to keep inflation around 4%

0 CommentsPrint E-mail Xinhua, March 8, 2011
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China is capable of keeping inflation around 4 percent this year if the central government's plicies are well implemented, China's former chief statistician said on Tuesday.

"The abundant supply of farm produce is key to curb inflation. We should take all necessary measures to increase agriculture production," said Li Deshui.

Bank lending should focus on rural areas and agriculture development, said Li, also a member of the National Committee of the Chinese People's Political Consultative Conference, which is convening its annual session.

China targets four percent of Consumer Price Index (CPI) this year. CPI rose 4.9 percent year on year in January, higher than the 4.6 percent in December but lower than a 28-month high of 5.1 percent in November.

Premier Wen Jiabao said in this year's government work report that an oversupply in major industrial products and ample grain reserves after seven straight years of good harvests gives the government room to fight inflation.

China's inflation rate in February was likely to be lower than that of January, Li Pumin, a spokesman of the National Development and Reform Commission (NDRC), said during an online interview on Tuesday.

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