China warns of inflation threat

China warns of inflation threat

By Rob Delaney Bloomberg News
Friday, March 25, 2005

BEIJING The central bank of China said Thursday that inflation pressures remained a concern and that fixed-asset investment might rebound, echoing comments made by Prime Minister Wen Jiabao this month.
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Monetary policy needs "further improvement" and the central bank will continue with market-oriented interest rate reforms, People's Bank of China said on its Web site after a monetary policy committee meeting.
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The statement did not say whether an adjustment in benchmark interest rates was under consideration.
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China is trying to slow economic growth to 8 percent this year from an eight-year high of 9.5 percent in 2004. Wen said on March 14 that China "must not slacken" economic controls aimed at cooling inflation and preventing a rebound in fixed-asset investment.
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"Not only is inflation, as measured by the consumer price index, rising again, but prices of other goods, such as health care, education and housing that are not reflected in the CPI, are also rising," said Ha Jiming, chief economist at China International Capital....cont'd

http://www.iht.com/articles/2005/03/24/bloomberg/sxyuan.html

thats a wake up call!!!