"To foster healthy economic growth, the authorities should be very cautious about raising fuel prices, as it has a direct impact on inflation," said Wang.
Some experts have forecast that as the world's second largest economy finalizes its leadership transition next month, a new round of massive stimulus plans will be unveiled, which will fuel inflation as a result.
"Policy will remain supportive of growth, but will be marginally tightened toward end-2013 on concerns of rising inflation. Since new leaders do not like either a big slowdown or overheating, the authorities are unlikely to be too aggressive in their stimulus plans in 2013," said Lu.
A Barclays Research note, which was e-mailed to the Global Times Tuesday, said that "given rising inflation and property prices," the room for further monetary easing will be "very limited."
![]() |
China's 'leftover women' phenomenon arouses heated debate in West