Su Ning, vice governor of China's central bank, made his prediction that China's consumer price index (CPI) would rise some 4.8 percent, 4.3 percent and 4.2 percent year-on-year in October, November and December respectively.

Su made the remarks at the 2004 China Forum on Economic Growth in Suzhou last weekend. He warned against any underestimation of the pressure of the current price rise. In his opinion, the recent decline of prices should be regarded as a result of the high base of the last year rather than an indicator of actual downward movement.

He said the central bank would hedge against excessive liquidity through open market operation to keep the steady growth of money supply. He also stressed the looming danger of possible rebound of investment.

Su reiterated People's Bank of China's commitment to prudent monetary policy.

(People’s Daily November 3, 2004)