The central bank warns against rising inflation in 2004 and vows to control credit growth to fend off inflationary pressures.
Driven by rapid economic growth, particularly investments, the rise in the CPI jumped from below 1 percent in the second half of last year to 3.2 percent in December.
Price hikes on grain and raw materials will spill over well into 2004.
"Even without new factors driving price growth, the index will move up 2.2 percent by itself in 2004," the report said.
"We really cannot be optimistic about the inflation situation."
The central bank said it will use various instruments to control excessive lending growth and cool investment activity.
(China Daily February 25, 2004)
