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Nov 23,2007
China inflation forecast at 4.6 percent
by UPI

BEIJING -- China is forecast to have moderate-to-tolerable inflation with the Consumer Price Index for the year in the 4.5-to-4.6 percent range.

But Xie Fuzhan, head of the National Bureau of Statistics, said the monthly consumer prices index rate, which hit 6.5 percent in August, would likely stay in the 6 percent range for several more months or far higher than the government's target of 3 percent, Xinhua reported.

Xie blamed the hike in the CPI largely on higher food and production costs brought on by rising oil prices.

He said in order to stabilize the economy, the gross domestic product volume should be put under control with the growth rate brought to within 10 percent through both monetary and fiscal policies. He said the GDP growth for this year was expected to be 11.5 percent.

Copyright © 2007, by United Press International. All Rights Reserved.

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