Chinese Premier Wen Jiabao has re-emphasized that government leaders must continue their fight against inflationary pressure in China, state media said Wednesday.
"We must resolutely prevent price hikes, and we must firmly control the real estate market," Wen was quoted as saying late Tuesday at a celebratory Lunar New Year gathering of the State Council, China's cabinet. This year's Lunar New Year's Day falls on Thursday.
Wen's remarks came as China's inflationary pressure is expected to go up in January as people buy presents to give to relatives and friends for the Lunar New Year.
The premier was at the same time confident about controlling inflation in the country.
"We have the confidence and ability to overcome any difficulties and challenges, so that people can live a happier life with dignity."
As China faces continuing inflationary pressure triggered by excessive liquidity and an overheated economy, the government has been rolling back its stimulus measures introduced during the global financial crisis.
Since late October, Beijing has adjusted banks' reserve ratios on four occasions, raising interest rates twice.
Market watchers expect the Chinese authorities will further tighten their monetary policies after the Lunar New Year holidays.