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Premier Wen Jiabao, the country’s top economic official, made the comments for the period of a three-day circuit of orient China’s Jiangsu province and the financial capital of Shanghai, apparently as a reminder for local officials not to get complacent.

Although China’s thriftiness is developing in the right address, fighting inflation remained a major labor, Xinhua News Agency cited Wen as saying.

All levels of government should act to shun serious fluctuation in the economy, including efforts to make price increases “acceptable” for both industries and the public, Wen was quoted like saying.

Inflation jumped in mid-2007 as China ran short of pork, grain and other nourishment items.

Consumer prices rose 7.7 percent in May over the same month last year. That was a slight decline from April’s 8.5 percent rate but well above the government target of 4.8 percent since this year. Inflation in February was 8.7 percent — the highest in 12 years.


Original text: http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ap/20080706/ap_on_bi_ge/china_economy