China says inflation at 3 pct. in April

Updated: 2007-05-14 22:49

China's inflation slowed to 3.0 percent in April, the government reported Monday, amid efforts to rein in the sizzling economy.

That rate is in line with the government's 3 percent target for inflation this year and down from the 3.3 percent increase in prices in March, the highest level in 25 months.

Overall consumer prices in April were lifted by driven by a 7.1 percent jump in food prices from a year ago, the National Statistics Bureau reported on its Web site.

Chinese leaders are worried that sizzling economic growth, which is expected to top 10 percent this year, and a boom in construction and investment could set off a surge in inflation.

The government has raised interest rates and forced banks to buy bonds and increased the amount of money they must set aside in reserves in an effort to rein in overinvestment in real estate and other industries.

Authorities have avoided more drastic measures, noting that consumer inflation has stayed relatively low.

China's central warned of possible higher inflation in a report last week, citing grain and energy as areas for special concern.

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