BEIJING - China's economy resumed annual double-digit growth by expanding 10.3 percent last year, the National Bureau of Statistics (NBS) announced Thursday.

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Gross domestic product (GDP) hit 39.8 trillion yuan ($6.05 trillion) last year, Ma Jiantang, director of the NBS, told a press conference Thursday.

In the fourth quarter, GDP growth picked up to 9.8 percent year on year from 9.6 percent in the third quarter, after slowing from 11.9 percent in the first quarter and 10.3 percent in the second.

"In the past year, China has consolidated and boosted its recovery from the global financial crisis, and the national economy is generally operating well," Ma said.

"The country is at a key stage of turning recovery into stable growth," he said.

The government set the full-year growth target at 8 percent in early 2010, after the economy recovered from the global economic downturn and expanded 9.2 percent in 2009 year on year.

Inflation remains high

The consumer price index (CPI), a main gauge of inflation, rose 4.6 percent in December year on year, according to the NBS .

The monthly figure was slightly lower than November's 5.1 percent, a 28-month high, but slightly higher than October's 4.4-percent growth.

The CPI was up 3.3 percent in 2010 from the previous year, the NBS said.

The prices of food, which accounts for a third of the basket of goods in China's CPI calculation, surged 7.2 percent year on year in 2010.

The rise of food prices in December was down from 11.7 percent in November, 10.1 percent in October, 8 percent in September and 7.5 percent in August.

China's producer price index (PPI), a major measure of inflation at the wholesale level, rose 5.5 percent last year.

The December PPI rose 5.9 percent year on year and 0.7 percent from November, the NBS said.

The PPI rose 6.1 percent year on year in November, compared with a 5-percent gain in October.

"The CPI growth of 3.3 percent last year was not high as the index had hit 4.8 percent in 2007 and 5.9 percent in 2008," said Zhang Liqun, a researcher at the State Council's Development Research Center.

Zhang said the government measures to cool rising prices had begun to take effect with vegetable prices falling and grain and cooking oil prices stabilizing.

"The figures indicate China's overall supply and demand generally struck a balance. It is essential for the healthy growth of a country's real economy," Zhang said.