February inflation China exceeded expectation

Consumer prices in February rose by 4.9 compared to the same month last year, industrial production increased by 14 percent in the first two months of 2011.According to the statistics bureau in Beijing, producer prices rose by 2.7 percent last month, showed the largest increase seen since September 2008.
  Beijing Statistics Bureau announced on Friday, according to the report, the central bank's tight monetary policy measures have failed in keeping the rising prices were falling. The data from the pressure to increase interest rates strengthened.
  China Central Bank Governor Zhou Xiaochuan on Friday, said that interest rates can be used to reduce inflation.
  Xiaochuan, despite the possibility of higher interest rates to cause the flow of capital, interest rate policy is still one of the important tools in the fight against inflation, he said.
  Xiaochuan, the exchange rate policy reform initiatives, under controllable and gradual manner, and continue the level of exchange rate flexibility to increase the number of recurrence.
  Hong Kong-based economist at Mizuho Securities Asia Sen. Jianguang company, "Oil and food price increases in the inflation risk is too much. At the same time, a significant increase in wages," he said.