WB raises inflation projection for China

The World Bank has raised its forecast for China's inflation this year to 7 percent from 4.6 percent as previously projected in February, but said the fundamentals of the economy remained robust.

In its latest China economy quarterly update released yesterday, the Bank raised its projection for GDP growth in 2008 to 9.8 percent from 9.6 percent, citing new data adjustment made by the National Bureau of Statistics that points to a better performing service sector.

The recent earthquake - despite the enormous human tragedy - is expected to have only a moderate impact on the wider economy, said the World Bank report.