From Reuters via Khaleej Times Online:
In its monetary policy report for the second quarter, the central bank reaffirmed that it will moderately tighten monetary policy as it is detecting more and more evidence that the world’s fastest-growing major economy could overheat. China’s consumer price inflation accelerated to a 33-month high of 4.4 percent in the year to June. Food costs surged 11.3 percent in June from a year earlier, led by a spike in pork and egg prices, but the PBOC said other factors were at work. [Full Text]
See also: Overheating and the Danger of Price Controls from Caijing.com.cn.