Zhou Xiaochuan, China's Central Bank governor, said in Shanghai on Saturday that inflation will remain the top concern for the nation's monetary policy. "At present, what China's monetary policy requires the most is to curb inflation, because as we've seen, since last year, the tide of inflation has been rising in many countries, including some developed ones."

Zhou Xiaochuan made the above remarks at a financial forum in Shanghai, which was attended by many economists and world-famous financial firms.

China's inflation took its biggest jump in nearly 12 years in February when it rose 8.7 percent compared to the same period a year ago, according to a report issued by the Industrial and Commercial Bank of China.

With the Consumer Price Index in China hovering over 8 percent, many are concerned whether the government can achieve its goal of a 4.8 percent in 2008.

Experts say the present inflation in China has been fueled mainly by rising food and energy prices in the global market, and has been compounded by domestic factors that include increased costs and a strong demand.

Hu Zuliu is the president of Goldman Sachs Asia-Pacific.

"Trade takes up 70 percent of China's GDP. Therefore, the rising prices for international oil, natural gas, iron ore and rice will all affect China's inflation rate. But the rising RMB exchange rate will help to ease import inflation."

China has rolled out a series of measures to fight inflation, including increasing farm subsidies to boost production and curbing grain price hikes. It is estimated that the inflation index will begin to decelerate in the second half of 2008 as the government's macro controls begin to take effect.