China 'will tackle rising inflation'

2 August 2011

China's central bank will keep combating rising inflation as its primary policy focus in the coming months, it has stated.

According to Reuters, the People's Bank of China has reiterated its stance of being determined to bring its level of inflation under control in the aftermath of the global economic downturn.

In order to do so, the institution has pledged to maintain a prudent financial outlook throughout the remainder of 2011 as it recognises the fact that "domestic inflation expectations remain on the high side".

"The foundation work for stabilizing prices is not solid and there is a chance of prices rebounding once policy is relaxed," the body added.

Recently, Bloomberg reported that surging tax revenue in China during the first half of 2011 has helped to ease the nation's debt concerns.

And its central bank has now moved to assure consumers it will use factors like foreign exchange and interest rates to keep inflation in check.

By Tony Aynsley

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