PBOC Adviser Sees China ‘Chronic’ Inflation Lasting Decade

China’s inflation, already at an almost three-year high, is “most likely chronic” and will remain a problem over the next decade, Li Daokui, an academic adviser to the People’s Bank of China said.

The central bank, which has raised borrowing costs four times since October, needs to increase interest rates further to combat price gains, Li, a professor at Tsinghua University, said at a conference in Beijing. Li, 47, said he was giving his view as an academic.