Currently the consumer price index is okay and we also want to boost consumption.

Otherwise, in two or three years' time, once domestic consumption loses steam, there will then be a lot of pressure around issues such as the exchange rate and trade friction.

Without China's goods exports, the U.S. CPI (consumer price index) should have risen about two (more) percentage points.

instead of transferring various risks to the government, as they did under the fixed-exchange regime.

China has undertaken several reforms related to the safety net, healthcare reform, pension reform, education reform in the hope to reduce precautionary savings.

What the premier said means that China would continue to increase the flexibility of the RMB exchange rate in a gradual manner.