Inflation pressures ease, but target still elusive<p>BEIJING -- The slowing growth of China's main inflation indicator is set to continue in the April figures, thanks to falling farm produce prices, market analysts said on Sunday.<br/><br/>The consumer price index (CPI), which hit 8.7 percent for February and 8.3 percent for March, would probably be around 8 percent for April over the same month last year, said Chen Jijun, an analyst with Citic Securities.<br/><br/>Falling farm produce prices were the main factor dragging down the rise in the CPI, said Chen.<br/><br/>Although, grain prices remained stable but high, vegetable prices dropped significantly last month thanks to abundant supply, with some categories falling by 50 percent.<br/><br/>Zhang Ying, chief analyst with Hujie Investment, forecast the growth in the index would continue to slow after the 11-year peak in February.<br/><br/>The annual goal of 4.8 percent, however, remained a difficult target to hit, said chief economist with the National Bureau of Statistics (NBS) Yao Jingyuan, in an interview with the China Central Television on Wednesday.<br/><br/>The CPI surged 8 percent in the first quarter, 5.3 percentage points higher than the same period last year, indicating continuing inflationary pressures, he said.<br/><br/>Food prices, the key driving force of the CPI, remained high with pork prices rising 63 percent year on year, said Yao.<br/><br/>Up to 6 million pigs died in the severe winter weather this year, driving up prices, he said.<br/>External factors confounded the problem. International crude prices more than doubled in less than five months, greatly affecting domestic energy price controls, Yao said.<br/><br/>As world economies continued to integrate, global grain price rises also affected the domestic market.<br/><br/>The price of wheat had climbed by 112 percent and corn by 47.3 percent since September 2006, reaching a 10-year high. Rice prices also doubled to stand at $760 per ton.<br/><br/>Yao said sufficient grain reserves and good production would guarantee supplies, barring any natural disasters.<br/><br/>The 4.8 percent annual target manifested the central government's resolution to contain inflation. "We have not only determination, but also concrete measures," Yao said.</p></div>