Raise inflation alarm level to 4.5%: economist
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China's government-set inflation alarm level should be raised to 4.5 percent from the current 3 percent, assuming China is able to maintain a 9-percent growth rate in the short-term, a renowned Chinese economist said over the weekend.
Some imported inflation is inevitable if the international market prices of oil, iron ore and grain continue to rise, said Li Yining, deputy director of the financial and economic sub-committee of the Standing Committee of National People's Congress.
The 3-percent alarm level is suitable for western countries, said Li. But with the Chinese economy expanding at 9 percent, fixing the inflation alarm level at 3 percent could cause economic problems, he said.
China's consumer price index (CPI) rose 3.5 percent year-on-year in August, the highest level in 22 months. Some analysts believe that CPI will post another record high in September.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.
