China must stay alert on inflation in 2012
Expectations of a relaxation of macroeconomic policies are "unwise" as none of the conditions contributing to imported inflation have been tackled this year, said Chen Huai, former director of the policy research office of the Ministry of Housing and Urban-Rural Development.
Curbing inflation remains a priority this year as the United States maintains its policy-easing stance, injecting liquidity while pushing up the prices of dollar-denominated global commodities, Chen said.
China's inflation, mainly driven by surging food prices, is also easily influenced by global market fluctuations. When the global oil price surpasses $60 a barrel, replacements such as corn and soybeans are sought, which further pushes up food prices, Chen said.
