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China feels inflation pressure - top planner
(Xinhua)
Updated: 2008-03-06 11:40

China clearly feels the pressure of inflation posed by structural price increases but is determined to keep its CPI rise at around the 4.8-percent target set for this year, top planning official Ma Kai said Thursday.

China's consumer price index (CPI), which scored 4.8 percent last year and an 11-year-high of 7.1 percent in January, were largely attributed to structural price hikes caused by growing food and agricultural prices, Ma, minister in charge of the National Development and Reform Commission, said at a press conference on the sidelines of the parliamentary session.

Climbing food prices contributed to 83 percent of last year's CPI rise and 84.5 percent of that in January, he said, saying the price hikes were more "price recoveries", given the slight fluctuations of the past decade.

"This, however, does not mean we can ignore the situation," he said. "In fact, we have to be aware of the increasing pressure."

Premier Wen Jiabao, in his government work report to the parliamentary session beginning Wednesday, acknowledged China is facing increasing inflationary pressure.

China has set the CPI rise target for this year at around 4.8 percent, according to Wen's report.



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