China sets policy to rein in inflation

Link to the article: Financial Times

By Geoff Dyer in Beijing and Patti Waldmeir in Shanghai

China will step up efforts to fight inflation next year after prices rose more than 5 per cent in November, according to a statement released after an annual economic policy meeting in Beijing.

The 5.1 per cent rise in the consumer price index in November was higher than expected, and up from 4.4 per cent in October. It is also well above the government’s 3 per cent inflation target and will increase pressure on the authorities to raise interest rates and further rein in the huge monetary stimulus of the past two years.