Official: 4.5% inflation warning level acceptable in China

11:36, October 18, 2010      

Email | Print | Subscribe | Comments | Forum 

China's inflation warning level can be raised to 4.5 percent instead of being limited to 3 percent because China can still maintain a 9 percent increase in its economic growth, said Li Yining, deputy director of the Economic Commission under the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC) at Ward Wealth Expo 2010 Saturday.

Li Yining said that if the international oil, iron ore prices and food prices continue to rise, imported inflation would be inevitable.

However, an inflation warning level of 3 percent is applicable in the West. Since China can still maintain a 9 percent economic growth rate, if a 3 percent inflation rate is still seen as the warning level, a lot of problems might be present in the social economy, Li said.

He argues that 4.5 percent rising of inflation can be expected and accepted in China.

China's August consumer price index (CPI) rose by 3.5 percent, hitting a new high in 22 months, and some analysts expected that CPI may create a new record in September.

Li also noted that the current proactive fiscal policy should not be ended rashly in a short term.

"The lessons of 1990s remain firm in our minds. If we now develop in a sharp turn, debt defaults and incomplete or delayed residential projects would appear," Li said. "Deflation could occur. Therefore, we must maintain the current situation and keep a close watch on it and then end the policy appropriately under the right circumstances."

By Zhao Chenyan, People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion