No time for complacency

The combination of soaring consumer prices at home and the worsening global economic outlook has ostensibly added a further complication to China's endeavor to keep economic growth on track while preventing overheating.

As the world's second largest economy, China will have no chance of maintaining its growth momentum amid a global recession. So Chinese policymakers will have to keep a watchful eye on external weakness and the volatility of global markets.

But with inflation still too high for comfort, it remains far too early for a policy about-face, even though China has introduced five interest rate hikes since October 2010 and frequently increased government curbs on lending and investment.