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The rate of inflation in China is set to rise further this month before moderating later in the year, the National Development and Reform Commission said.

The statement from the commission, China’s top economic planning agency, echoed what many independent economists have been projecting for some time: that consumer prices will continue to be pushed up over the summer and will probably prompt more interest rate increases from the central bank in the next few weeks. “Current overall price levels are in the high range and in coming months will remain relatively high, but over all the situation is controllable,” the commission said.

Soaring growth and free-flowing bank loans last year helped fuel sharp rises in the prices of homes and consumer goods. The central bank has responded with a series of steps to rein in lending and has also raised interest rates in small increments four times since last October.

Those measures have begun to slow down the red-hot pace of China’s growth, as intended.

 

 

Last Updated (Sunday, 26 June 2011 22:49)