BEIJING, Sept 17: China’s inflation in 2007 is expected to hit 4.2 per cent, well above a government target, due to soaring food prices, the Asian Development Bank said on Monday.
“The net effect of the higher-than-expected food prices has led to a revision in (China’s) full-year inflation forecast to 4.2 per cent from 1.8 per cent,” according to an update of its 2007 Asian economic outlook.
It also raised forecast for next year to 3.8pc from 2.2pc as price reforms in the state-controlled public utility sector are likely to help keep overall inflation high even if food prices ease.—AFP
