THE government would set a 4 percent target for consumer inflation next year, up from this year s 3 percent objective, the country s top economic planner said Tuesday, an indication that the government will desist from aggressive tightening even as price pressures mount.
The slightly higher threshold for inflation was consistent with another report in official media earlier in the day that China would aim to cap new loans at about 7.5 trillion yuan (US$1.1 trillion) next year, a more generous ceiling than many in the market had been expecting.
The main targets for economic and social development set by the Central Government for next year are that GDP will grow by about 8 percent and the consumer price index will be capped at about 4 percent, said Zhang Ping, head of the National Development and Reform Commission (NDRC).
The 8 percent growth target is, as in past years, likely to be a moot point. Most economists think the world s second-largest economy will grow about 9 percent next year.
And although the 4 percent consumer price target is higher than this year s, it is not new ground for China. In 2008 the government targeted an average of about 4.8 percent inflation and it aimed for about 4 percent in 2009.
The comments by the NDRC s Zhang were the first official statement of numerical targets for 2011 following the Central Economic Work Conference, an annual leaders meeting that ended Sunday and is key for setting policy for the coming year.(SD-Agencies)
