China's goal of keeping inflation under 4% may be tough to reach even as it expects its economy to continue to grow, althopugh at a slower rate, Premier Wen Jiabao was quoted as saying by Hong Kong media on Monday. The remarks mark a shift in tone from as recently as Friday.
However, on Friday he sounded considerably more optimistic, insisting that inflation was under firm control and that it would fall back. In an opinion piece in the Financial Times, he said: "There is concern as to whether China can rein in inflation and sustain its rapid development. My answer is an emphatic yes." He also said China was "fully capable" of keeping its economy bubbling.