China to keep 2008 CPI rise around 4.8 percent: Premier
5/3/2008 16:38
China has set the target of keeping this year's CPI at around 4.8
percent, given the inflationary pressure and strong influence from last year,
Premier Wen Jiabao said at the annual parliamentary session today.
The
primary task for macroeconomic regulation this year is to prevent fast economic
growth from becoming overheated growth and keep structural price increases from
turning into significant inflation, Wen said in his report to the First Session
of the 11th National People's Congress opening today.
"At the same time, we
have to take into consideration the ability of individuals, enterprises and all
sectors of society to tolerate price increases and try our best to avoid sharp
price increases," he said.
Wen admitted the country is facing "increasing
inflationary pressures" and the task of holding down inflation is
"difficult".
"The current price hikes and increasing inflationary pressures
are the biggest concern of the people," he said.
Last year, China's consumer
price index (CPI) rose 4.8 percent year-on-year, the highest since 1997, mainly
due to rises in the cost of food and housing.
Wen said the price increases
had a great impact on the people's lives, particularly on the lives of the
low-income population.
"Because factors driving prices up are still at work,
upward pressure on prices will remain great this year," he said. "In addition,
prices of the means of production have continued to rise and real estate prices
have risen steeply, making the task of holding down inflation difficult."
NPC
deputy Zhao Peng, from the eastern Anhui Province, said he saw slim chances for
prices to drop significantly this year.
"I think the targeted 4.8 percent CPI
rise for this year is reasonable and in line with the rules of the market
economic operation," said Zhao, president of the Anhui provincial branch of the
Industrial and Commercial Bank of China.
China's annual CPI rise averaged 2.1
percent between 2003 and 2006.
The year-on-year CPI rise exceeded 6 percent
for the first time in August 2007 and for five consecutive months.
In
January, China's monthly CPI rose by 7.1 percent, a result of price increases
during the Chinese Lunar New Year and the severest winter weather attacking
central, southern and eastern China in 50 years.
Xinhua
|
