Source: CCTV.com

07-04-2008 14:58

Inflation in China could average about 7 percent for the year if the government is able to keep tight control over energy and resource prices. This is according to the Chinese Academy of Social Sciences. It's released a report warning of big rises in the Consumer Price Index if authorities fail to stop higher up-stream prices from being handed on to the retail level.

The recent hike in fuel and power prices alone could push up CPI this year by 0.7 percentage points. The report suggests that the government could continue to free-up prices to reduce distortions in economic activity. It pointed out that there have yet to be adjustments to prices for liquefied gas, natural gas, household electricity and fertilizer, and that there is considerable pressure for a general hike in the prices of these products.

 

Editor:Yang Jie