Economic growth in China surged to nearly 10% in the three months of the year as inflation jumped to the highest rate in three years, increasing pressure on officials to tighten monetary policy, according to Bloomberg. On Friday, the Chinese statistics bureau reported that gross domestic product grew 9.7% in the first quarter of the year from the same period the previous year, outpacing economists’ forecast for a 9.4% expansion. The gain came as the economy grew by 2.1% increase from the previous quarter, slowing from a 2.4% gain during the previous three months.
The official report also showed that inflation accelerated in March to a 5.4% annual gain, which beat forecasts for 5.2% inflation and marks the most rapid price growth since 2008. Despite the strong economic growth, experts are growing increasingly concerned over high inflation. George Soros of Soros Fund Management said price growth is “somewhat out of control,” and recommended that officials “allow the currency to appreciate as a way of controlling inflation.” Liu Li-Gang of ANZ warned that going forward, “Inflation remains a top risk.”