The continuous rise of consumer prices will, understandably, fuel worries about emerging inflation, but it does not yet warrant an aggressive use of monetary policy.

The country's consumer prices soared by 3 percent to another six-year high last month after the consumer price index (CPI) just touched the highest point since 1997 in October.

Two months of price hikes clearly indicate that the threat of deflation has been substantially weakened as the Chinese economy evidently picks up after the outbreak of SARS (severe acute respiratory syndrome) early this year.

And to the relief of some economists who have nervously watched the yawning gap between investment growth and sluggish consumption, the latter economic engine finally puts on a spurt to sustain the growth momentum of the national economy.

The accelerated CPI rise is, in essence, a rebound from years of deflationary pressures. But as a key inflation gauge, it can hardly boost market sentiment without causing considerable caution against overheating, especially when excessive investment in certain sectors already topped the monetary authorities' target list.

The , the country's central bank, has adopted various monetary instruments to rein in the breathtaking surge of loans commercial banks lent in the past few months. And it appears ready to turn to its tool box again if needed.