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Overheating fears grow as China CPI hits 16-month high

Chinese consumer inflation spurted to a 16-month high in February and a raft of economic data displayed broad-based strength, providing fresh arguments for policy tightening sooner rather than later.

"Given the pace of real activity growth, which is well above potential level, and an inflation rate which is already at around 3 percent, we believe it is vital for the government to take more decisive measures to tighten the economy to prevent overheating," Goldman Sachs economists Yu Song and Helen Qiao said in a report.

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(Source: scmp.com)