China sets 2009 CPI growth target at 3-4.8%

China's National Development and Reform Commission (NDRC) has set its consumer price index (CPI) target for next year at 3-4.8%, sources reported.

The target figure is higher than 3% CPI growth in 2007, but lower than 4.8% in 2008, according to one source familiar with the situation.

Peng Sen, vice director of the NDRC, said the prices of agricultural by-products, labor force and land will maintain long-term upward trend, while prices of industrial raw materials, foodstuff and fertilizers may fall significantly due to the weakening external demand and domestic economic downturn.

China's CPI, the major gauge of inflation, climbed 2.4% in November from a year earlier, easing 1.6 percentage points from 4.0% in October, the National Bureau of Statistics (NBS) said earlier.

Peng noted that the CPI growth would continue to drop in December, and the CPI for the entire 2008 may rise 6% or even lower.