NDRC chief says China to raise inflation target for 2011

China’s inflation target will rise to 4% in 2011 from 3% this year, suggesting that the government will not impose severe tightening measures in response to rising consumer prices, Reuters reported. It comes after reports on Monday indicated that the government will set a new lending quota of about US$1.1 trillion for 2011, higher than many had expected. Zhang Ping, head of the National Development and Reform Commission, was quoted by state broadcaster CCTV as saying that the government is planning "that GDP will grow by about 8% and the consumer price index [CPI] will be capped at about 4%." This was the first official statement mentioning numerical targets for 2011 since the Central Economic Work Conference ended on Sunday. However, Wang Jian, secretary general of the NDRC, said in an article published in the China Securities Journal Wednesday that China faces more inflationary pressure in 2011, with the CPI likely to rise by 5-6%.