China Pursuing 3 Percent Inflation Goal

China has cut back on its growth as their economy became too hot, and now will grow at a still impressive 8 to 9 percent. With that as a backdrop, China has also set a goal of keeping inflation at a 3 percent level in 2010.

They may reach their goal, as grain supplies are abundant and it seems supply outweighs demand, which will keep food prices down, and there is also an excess capacity, which should also keep prices down in other sectors, helping them to achieve their inflation goals.

China recently announced they were looking at tightening their money supply as inflation looked like it could get out of control, as it increased by 2.7 percent February, already close to the 3 percent goal for the year.

About 50 percent of the Chinese people consider the inflation rates they're now experiencing as too much, according to the central bank in China, generating the moves by China to rein it in if they are able to.

Even with trying to cool of their economy, China is struggling as there is a ton of business activity they simply have no control over, and that could make it difficult to keep their economic growth lower, along with inflation.

Some banks and financial institutions around the world say China will probably not be able to contain growth, and project them to be close to what they have been in the recent past for their GDP, with 9.5 to 10 percent as the targets mentioned.