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Chinese Premier Wen Jiabao said no inflation problems were seen in 2006, but fixed asset investment was still too large.

Wen made the comments in an address to delegates at the opening of the annual National People's Congress, China's legislature.

China's consumer price index rose an average 1.5 percent last year, but the pace picked up to 2.8 percent in December from 1.9 percent in November and 1.4 percent in October.

Fixed asset investment maintained a relatively fast pace of 24 percent last year.

Economists are watching CPI and investment growth to gauge whether the government will tighten monetary policy further.

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