THE Chinese central authorities said Tuesday it would put both overheating hazards and inflation risks at the top of its macro control targets next year.

According to a conference of the Political Bureau of the Communist Party of China (CPC), the Central Committee would take all measures to prevent the national economy from overheating. Taming inflation would be the major issue at top of their agenda. The conference was presided over by Hu Jintao, general secretary of the CPC Central Committee.

China’s economy is expected to expand 11 percent in 2007. The central bank said last week that the annual consumer price inflation may likely hover near 4.5 percent. Excessive growth in investment and ever-swelling trade surplus pose severe challenges, the central bank said.

China’s investment in urban fixed assets rose 26.9 percent in the first 10 months, up 0.1 percentage point over last year.

The consumer price index rebounded to 6.5 percent in October, to match the 11-year monthly record in August, with prices of foodstuffs rising 17 percent year on year.

Top statistician Xie Fuzhan predicted the country’s CPI will rise 4.5 to 4.6 percent in 2007.

Xie said apart from rising food prices, global price rises for crude oil fuelled price rises for industrial products. Meanwhile, price rises for nonferrous metals and iron ores also contributed to the CPI increase.

He also warned that substantial price rises for real estate and equities would translate to higher risks on economic growth in the long term.

The economic conference Tuesday also stressed that domestic demand would continue to be expanded in order to turn consumption into a more powerful driving force of the national economy.

The central authorities would make greater achievements in improving the livelihood of the common people next year, and in particular better the lives of low-income people, according to the conference.(SD-Agencies)