China to step up anti-inflation measures

The Chinese government will focus on pushing forward with anti-inflation measures for the rest of the year, deputy chief Zhu Zhixin from the National Development and Reform Commission said on Wednesday at the fourth session of the Standing Committee of the 11th National People's Congress.

According to Zhu, the policy aims to counter the effects that slowing output and rising prices may have on the post-Games economy.

Economic controls should firstly be used to increase the supply of necessities, monitor key prices and improve the effectiveness of price controls, Zhu said.

"There is a strong demand for primary products, with prices hovering high on international markets, while more expensive land and labor at home will add to costs," CRI quotes Zhu as saying.

China's consumer price index (CPI), the main indicator of inflation, registered a deceleration throughout the summer months, raising concern about the development of the economy after the glitz of the Games.

July's CPI was up 6.3 percent from the same period last year, which is what economists expected, as the tighter monetary policies adopted last year seemed to bite, CRI says.

Meanwhile, China's economic output slowed down in the first half to 10.4 percent from 10.6 percent in the first quarter and 12.2 percent in the first half of last year.

At present, the government is committed to continuing to seek a balance between fighting inflation and maintaining growth, Zhu said.

In the second half of this year, the government will place even more emphasis on strengthening domestic consumption as a major source of economic growth, boosting agricultural output and increasing aid to small enterprises, he added.

According to CITIC Securities analyst Zhu Jianfang, the central bank is not expected to introduce any more tightening measures in the short term.