Figure 2: around 3.5%

Original text from the report:

We hope to limit the rise in the CPI to around 3.5%. This is based on consideration of both the carry-over effect of last year's price rises and likely inflationary factors this year. It also demonstrates our resolve and confidence to keep inflation under control and ensure people's wellbeing.

China's agricultural output has increased for several years in a row; supply of manufactured goods on the whole exceeds demand; and we have substantial reserves of grain and other goods and materials. We are fully capable of adjusting supply and demand through import and export, and all these factors will help maintain basic stability in general prices. However, there are many factors driving up prices this year, so we must not lower our guard. We must keep prices under control to ensure that price increases do not exert a significant negative impact on people's lives.

Comments: Li Yining, prominent economist and Emeritus Dean of Guanghua School of Management of Peking University

To keep the rise in the CPI at around 3.5% is the bottom line; we have to go all out to keep the figure under control. This figure is determined on the basis of factors including China's structural industrial adjustment, and rising costs. Among these, one important factor is that prices of utilities such as water, electricity, and gas will be adjusted this year.