Tel interview with Professor Hou Deming on CPI

Let's get more on the Consumer Price Index just out today which has surprised some analysts by rising rather more than expected. Professor Huo Deming from Peking University joins us on the telephone.

Q1. The usual reasons are being trotted out for this higher-than-predicted rise in last month's CPI. For example, the Spring Festival factor, a low base for comparison. How much do you think these have actually contributed to February's 2.7 percent spike?

Q2. If we're hitting 2.7 percent in February, how likely is it that policy makers will be able to keep CPI growth within its official target of 3 percent for the year?

Q3. And of course, this is on every investor's mind... what's the central bank likely to do next? Are we looking at a hike in reserve ratios or benchmark rates or the value of the yuan, or all 3 of these coming sooner rather than later?