|
By Winny Wang
CHINA'S economy grew 11.1 percent in the first quarter of this year, much higher than the expectation and may urge the government to take more drastic measures to cool off the overheating economy.
The country's March inflation rate accelerated to the highest in more than two years.
Consumer prices rose 3.3 percent last month from a year earlier after climbing 2.7 percent in February, the National Bureau of Statistics said today in Beijing.
Central bank Governor Zhou Xiaochuan is concerned that cash from a record trade surplus is stoking excess investment. The central bank has raised interest rates and asked lenders to set aside more funds as reserves to reduce the risk of loans fueling inflation and asset bubbles.
Inflation accelerated to 2.7 percent from 2.2 percent in January, official statistics show. The central bank aims to cap this year's increase in the consumer price index at 3 percent.
For the first quarter, consumer prices gained 2.7 percent from a year earlier.
People are concerned whether the government will raise interest rates to control the rocketing figures.
The country postponed the announcement of its first-quarter gross domestic product until 3pm in Beijing today from 10am to avoid affecting the stock markets because of the faster-than-expected growth.
|
