Govt think tank wants inflation target to be raised to 5-7%

China should raise its inflation target to as much as 7 percent to make more room for measures to boost economic growth, a top government think tank has said.

The inflation target should be raised to 5 to 7 percent for 2009 and 2010 to maintain stable and rapid economic growth, the State Information Center said in a report published in the China Securities Journal yesterday.

Policymakers aim to limit inflation to 4.8 percent in 2008, and have rolled out an array of austerity measures to cool the economy and curb demand. The consumer price index, the barometer of inflation, thus moderated to 6.3 percent year-on-year in July, down from the peak of 8.8 percent in February.