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Adviser: Inflation to hit 5%

Adviser: Inflation to hit 5%

Write: Kersen [2011-05-20]
Adviser: Inflation to hit 5%

A clothing store in Shenzhen, Guangdong province. China's consumer inflation could hit 5 percent on average this year, said Li Daokui, a central bank adviser. [Photo / China Daily]

The surge in commodity costs could derail the fight against price rises, said adviser

BEIJING - Consumer inflation in China will rise by 5 percent on average in 2011 and surging international commodity prices will be a major cause of uncertainty as the country battles to contain that inflation, said a central bank adviser on Wednesday.

However, accelerating the appreciation of the yuan should not be used as a tool by policymakers to curb surging prices. That's the view of Li Daokui, a member of the central bank's monetary policy committee, who spoke to China Daily in an exclusive interview.

Premier Wen Jiabao vowed to keep inflation within a range of 4 percent or lower this year, when he delivered the government's annual work report to the nation's top legislative body, the National People's Congress, on March 5.

Source:China Daily