Chinese inflation and housing prices continued to accelerate last month, underlining the difficult judgments the Chinese authorities face as they try to engineer a modest cooling in economic activity.
Consumer price inflation increased to 2.8 per cent in April from 2.4 per cent the month before, its highest level in 18 months although still below the government's target of 3 per cent. Factory gate inflation jumped to 6.8 per cent from 5.9 per cent.
Adding to the fears of overheating, house prices increased by 12.8 per cent in April from a year earlier, the fastest rate of increase since records began five years ago, although sales volumes in many cities have already slowed dramatically in recent weeks as a result of government policies aimed at discouraging property speculation.