The Chinese government aims to contain the fastest inflation during the next three years without hurting the economic growth, so we can see that the government in embarrassing situation to keep the economic growth on the track.
China will crack down new measures to curb growing inflation rates through following increases in interest rates and bank reserve requirements with a faster pace of appreciation in the nation's currency.
The leading economic index in China increased 0.3% to 155.3 during the month of February, adding the economic activity is moderating as China's government tightening measures.
However the CPI is still high, where the comfortable zone was set between 3% and 4%. The CPI which is considered to be an inflationary measure since the consumer price index jumped to 5.4% from a previous rate of 4.9%.