China's central bank warns of inflation
BEIJING - China's central bank on Wednesday warned of inflationary pressure, saying the influence of rebounding demand, labor supply changes and global monetary easing on prices must be watched closely.
The recovery in the economy and in demand may translate into consumer price movements very quickly and "particular attention needs to be paid to the effect of changing expectations on future prices," the People's Bank of China (PBOC) said in its quarterly monetary policy report.
"During the stage of economic transition, the prevention of inflation risks should always be a highlight in financial macro-control," the report said.
The remarks came after China's inflation rate ticked up in the past few months as the country's economy ended a seven-quarter slowdown and accelerated to a 7.9 percent year-on-year growth in the fourth quarter of 2012.
The consumer price index (CPI), a gauge of inflation, grew 2.5 percent year on year in December 2012, up from 2.0 percent in November and 1.7 percent in October.
The National Bureau of Statistics is expected to release the January CPI figure later this week.
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