China may face greater inflation pressure in the future, said People's Bank of China Governor Zhou Xiaochuan. State media reported his comments, made during a speech to the International Monetary Fund in Singapore on Sunday. He said the economy is open to inflationary pressures caused by tight monetary policies in expanding economies and high prices for oil and raw materials. At the same time, a growing tide of protectionism and trade friction may exacerbate the pressures of an overheating economy. He also said that China's push towards more domestic consumption – instead of relying on foreign investment for growth – is beginning to take effect.
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