A case for tight credit

The faster-than-expected rise in consumer prices in February should not make you panic over China's outlook on inflation. But still, the central bank must enact more tightening measures that could help cool the rise if the global recovery stalls in the future.

According to the National Bureau of Statistics, China's consumer price index rose 2.7 percent year on year last month, up from January's 1.5 percent rise. For those taking a hawkish view against inflation, the recent climb of consumer inflation to a 16-month high must be worrisome, though it is still below the 3-percent inflation ceiling the government has set for this year.

As the country's wholesale inflation accelerated to 5.4 percent, up from January's 4.3 percent, it is reasonable to predict more subsequent retail price hikes.