China official says inflation pressures remain elevated

China still grapples with elevated inflationary pressures, partly due to higher prices of imported goods, a senior government official said on Wednesday. Xu Xianping, vice head of the National Development and Reform Commission, told a regular briefing the government's anti-inflation campaign has achieved initial results.
"But we are still facing relatively big upward price pressures, especially considering rising international grain and oil prices, and imported inflation pressures are also strong," Xu said. "The government has made controlling price rises its top priority and related measures will be implemented in a step-by-step way," Xu added. The People's Bank of China has raised banks' reserve requirements - its preferred tool to mop up excess cash in the economy - eight times and lifted interest rates four times since October. In addition, the government has resorted to administrative measures to curb price rises and tried to boost food supplies.