China is booming as inflation ensures expansive 5 percent

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15 April 2011 last updated at 09: 22 GMT the Government has tried, food and property to curb China's economy its boom in March and was inflation since 2008 for the fastest speed accelerated.

Growth faster than expected was 9.7% between January and March over the same period a year earlier, said the National Bureau of statistics.

Consumer prices increased in March compared with the previous year by 5.4%. There was the annual 4.9% in February.

The Government has taken steps to try, property and food prices cool.

Chinese inflation has despite accelerated four interest rate increases since October.

"The numbers higher than market expectations, in particular the CPI (consumer price index), inflationary pressures is really great meaning," said never Wen of Hwabao confidence in Shanghai.

"So I think that on the skin tightening measure."

Control of inflation

Chinese President Hu Jintao said Friday that China's economic growth was still unbalanced.

Read the main story Martin patience BBC News, Beijing

The authorities have for months it was that their top priority is the fight against of inflation.

But despite measures such as the increase in interest rates that increased borrowing, inflation remains stubbornly high.

The Chinese authorities have placed much value in the treatment of the economy.

And that is, why it is so sensitive to the issue of inflation in China.

With millions of households spending half of their income for food is the fear, that social unrest could trigger high inflation.

The price increases are a result of massive government spending and loan program to ward off the effects of the global financial crisis in 2008.

The lending boom also House and stock prices drove to fears of an asset bubble.

He promised the role of domestic consumption in the economy boost.

Mr Hu expressed which Asia's version of the World Economic Forum on the Chinese island of Hainan in Boao.

This week, Prime Minister said Wen Jiabao, that the Government would use all the tools available to combat inflation.

"We are all means to stabilise the prices, the top priority of our economic controls this year and also our most urgent task try the" Mr said Wen during a cabinet meeting.

Food prices

Rising food prices were the main cause of inflation. The cost of food was 11.7% in the year to March. Housing costs have also surged.

Prices were driven by the demand. Retail sales in the first quarter of the year, 16.3% was over a year ago.

Driving in another sign of the effects of strong growth, oil demand for February rose to 10.3% a year ago, world oil prices higher.

The Chinese Central Bank increased the amount of money that must have Chinese banks lending to limit and to try to control inflation reserve.

Analysts expect the Bank to order further increasing in addition to possible interest rate increases.