BEIJING (MNI) - China is likely to raise its inflation target for 2011 to 4%, the China Business News reported Wednesday, citing an unidentified source.
Moreover, the government will pursue a "prudent" monetary policy, formally moving away from the "appropriately loose" policy adopted in late 2008 in reaction to the global financial crisis, the paper also said.
The inflation target is usually announced at the National People's Congress in every March, when other macroeconomic targets, such as GDP employment. and balance of payments are also released.
"The inflation target for 2011 is under discussion and is likely to be raised, but how much will depend on the consumer price performance in future months," the source told the paper, "4% is very likely to be proposed."
China's consumer price index rose to 4.4% in October, well above the government's 3% inflation target set for this year.
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