China faces pressure of price rises in short term

Updated: 2011-09-26 10:18


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BEIJING -- China faces pressure of price rises and capital inflows in the short term while its economic outlook remains positive, central bank governor Zhou Xiaochuan has said.

"At present and in the following period, China's economic growth momentum remains relatively strong, but in the short term, China faces challenges of rapid price increases and more capital inflows," Zhou said, according to a statement posted on the website of the People's Bank of China on Sept 25.

Zhou made the remarks at the meeting of the International Monetary and Financial Committee (IMFC), the steering body of the International Monetary Fund (IMF), held in Washington on Sept 24.

The Chinese government will properly handle the balance between stable and relatively fast economic development, economic restructuring and inflation expectations, he said.

The government will keep consumer prices generally stable and prevent big fluctuations in economic development, he said.

China's economy grew at an annual rate of 9.5 percent in the second quarter of this year, slower from a 9.7 percent rise for the first quarter. August's inflation rose to 6.2 percent year-on-year, well above the government target of around 4 percent for the year.

"The global economic recovery is weakening and the risk of declines is increasing,” he said, urging nations to strengthen cooperation.