Inflationary pressure

China's economic planners have criti-cized some media reports for stoking inflation fears. But criticisms have not prevented the consumer price index (CPI) from crossing the government-targeted 3 percent ceiling for the year.

Latest statistics show China's consumer inflation in May reached 3.1 percent, the quickest pace in 19 months, while producer prices rose to 7.1 percent, the highest in 20 months.

Policymakers should pay close attention to growing public concern over climbing consumer prices, because unwarranted fear of rising prices can make taming inflation more difficult. They should ensure that the annual CPI doesn't cross the targeted figure, and conduct studies to determine how high inflation could rise and what steps the government should take to keep it under control.