Inflation concerns dismissed

Government officials said that inflation was still manageable and unlikely to become a serious problem for China despite fixed-asset investment growing 43% in the first quarter. Inflation, which reached 2.8% in the first quarter, was described as �mild� by an official at the National Bureau of Statistics, who added that prices were expected to fall as China made the transition to a buyer's market and government measures to cool economic growth take effect. An official of the State Council's Development Research Center told Chinese media that China should be able to maintain a relatively high rate of economic growth and keep inflation in check. The statements came after a period in which Western analysts expressed increasing concerns that recent inflation was suggesting an investment bubble was going to burst soon.