The head of the National Development and Reform Commission said that inflation could affect more than food prices, XFN-Asia reported. In the China Securities Journal, Xu Lianzhong noted that producers could offset their rising prices by passing increases on to consumers. "If fixed-asset investment and consumption continue to expand, current food-driven price increases may develop into broad-based inflation, further adding to inflationary pressure," said Xu. Warning that China faces "huge inflationary pressure," he said the government’s top priority should be to strictly control fixed-asset investment growth to slow demand. China’s inflation hit 8.5% in April, up from 8.3% in March.
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