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Business / Macro

China lowers 2013 inflation target to 3.5%

(Xinhua) Updated: 2013-03-05 09:37

BEIJING -- China aims to hold this year's consumer price growth to around 3.5 percent, 0.5 percentage point lower than the inflation target set for 2012, according to a government work report handed out to media ahead of the annual parliamentary session on Tuesday.

"China is still under considerable inflationary pressure this year, and maintaining basic stability of overall prices has always been an important macro-control target," reads the report, which is to be delivered by Premier Wen Jiabao at the opening of the First Session of the 12th National People's Congress (NPC), the country's top legislature.

The reports says there is upward pressure on the prices of land, labor and other factors of production and the prices of farm products and services.

Meanwhile, China is facing imported inflationary pressure resulting from easy monetary policies in major developed countries, the report says.

Also, the inflation target is set to leave room for adjusting the prices of energy and resources, and is in consideration of the carry-over effect of consumer price rise in 2012, which the reports says will contribute about one percentage point to this year's inflation rate.

To keep overall prices stable, the government "shall ensure the supply of major commodities, boost distribution of goods, reduce logistics costs, and tighten oversight over market prices," reads the report.

China will continue to implement a proactive fiscal policy and a prudent monetary policy this year, according to the report.

The country's consumer price index, a main gauge of inflation, dropped to 2.6 percent in 2012 from 5.4 percent in 2011.

The report attributes last year's inflation drop to the government's efforts in controlling prices and the overall economic performance as well.

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