PBOC says inflation could become problem

People's Bank of China (PBOC) governor Zhou Xiaochuan said inflation on the mainland is a clear trend and that measures will have to be taken to prevent it if it continues. The Consumer Price Index rose by 3.2% in January 2004 compared with 2003 and the PBOC predicted that it will rise another 3% by 2005 in response to food and raw material price increases.