Inflation | featured news

China's turbo-charged growth eased just a touch in the first quarter, while its inflation jumped to a 32-month high, putting pressure on the government to do more to rein in prices and keep the economy on an even keel.

The recent surge in oil prices is no prelude to broader price increases that would force the U.S. Federal Reserve to raise interest rates, two top Fed officials said on Thursday.

China's central bank increased interest rates on Tuesday for the fourth time since October, raising suspicions that data next week may show inflation rose more than expected in March.

Wholesale prices surged last month at their fastest pace in just over 1-1/2 years due to higher energy costs and the steepest rise in food prices in 36 years.

China is on course for another five years of robust growth, but inflation threatens social stability and must be tamed, Premier Wen Jiabao said on Saturday. In China's version of a "State of the Union" address to the annual parliamentary session, Wen said the top priority this year was to curb price rises that are hurting ordinary people in the world's second-largest economy.

China's central bank raised interest rates on Tuesday, its second increase in just over a month, intensifying its fight against stubbornly high inflation.

China's gross domestic product in the fourth quarter grew 9.8% from a year earlier, faster than the third quarter's 9.6% rise, which may increase market expectations for further tightening on monetary policy.

Consumer prices rose last month as the cost of gas increased by the largest amount since June 2009. But outside of energy costs, there was little sign of widespread inflation.

China's yuan currency remains "substantially undervalued" and it is in Beijing's own interest to let it appreciate more rapidly to ward off inflation risks, U.S. Treasury Secretary Timothy Geithner said on Wednesday.

Consumer prices increased slightly last month as food and energy costs ticked up, but there was little sign of widespread inflation. The Consumer Price Index rose 0.1 percent in November, less than the previous month's rise of 0.2 percent, the Labor Department said Wednesday. In the past year, prices have moved up only 1.1 percent.