"Very difficult" for China to meet inflation target: People’s Daily

Despite a series of fiscal manoeuvres to curb runaway consumer prices, it will be “very difficult” for China to meet its 2011 inflation target, the official People’s Daily said in a strongly worded editorial last week.

“The fundamentals that drive consumer prices haven’t been eradicated and economic growth still faces many uncertainties,” the article said. “The top priority in the second half is to stabilise the prices.”

Fiscal policies need to be “steadfast” and “flexible” to maintain economic growth without stoking inflation, it added, underlining the challenges facing the country’s policymakers.

While Western analysts pay attention to the economic data, Chinese investors...