China mulls higher inflation target for 2011

China may raise its inflation target for 2011 at the central government year-end economic planning meeting, the China Business News reported today, citing an unnamed source.

China may raise its inflation target for 2011 at the central government year-end economic planning meeting, the China Business News reported on Wednesday, citing an unnamed source.

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The inflation target may be raised to 4 per cent next year, the newspaper reported, citing a person who is involved in the policy consultation with the government.

Separately, a senior researcher at a state think-tank, said in a commentary published in the official China Securities Journal that inflationary pressures will likely remain high in the first half of next year.

Inflation may be above 5 per cent in the first few months of 2011, said Liu Yuhui of the Chinese Academy of Social Sciences.