China`s sizzling economy expanded by a stunning 11.9 percent in the second quarter from a year ago, the government said Thursday, and announced it would take new steps to cool the boom. The figures put China on track for a fifth straight year of expansion above 10 percent and moved it closer to overtaking slower-growing Germany as the world`s third-biggest economy. Inflation grew 4.4 percent in June, its fastest rate in more than two years, and the economy also is under pressure from a swollen trade imbalance and high energy consumption, the National Statistics Bureau said. The April-June growth exceeded analysts` forecasts and was a sharp increase over the 11.1 percent rate in the first quarter. "The systemic and the structural problems that existed in economic performance are still outstanding," said Li Xiaochao, a statistics bureau spokesman, at a news conference. It was unclear how long it has been since China`s economy grew so fast during a single quarter. Beijing began revising historic growth figures in 2005 and has yet to issue detailed records. The last time annual economic growth exceeded 11.9 percent was 1994, when the economy grew 13.1 percent. Communist leaders want to maintain fast growth to lift millions out of poverty but are trying to cool some industries, where they worry that a boom driven by exports and investment could accelerate inflation or a debt crisis should borrowers fail to repay loans. They have raised interest rates four times since April 2006 and imposed investment curbs on some industries. "We will further enhance and improve macro control and put into practice various policies set by the central government," Li said. "And efforts will also be made to adjust the structure, change the pattern of economic growth and deepen reform which will lead to the realization of a sound and rapid growth of the national economy." Li gave no indication whether Beijing was planning a new rate hike or what other measures were under consideration. The 4.4 percent rise in consumer prices, lifted by a 7.6 percent jump in food prices, is well above the government`s target inflation rate of 3 percent. Chinese leaders are worried about the political impact of rising food prices, which hit the poor, populous countryside especially hard. Chinese stocks appeared to show little response to the economic data, although trading was thin on expectations that economic tightening measures might be announced over the weekend. The main Shanghai Composite slipped 2.1 points, or 0.05 percent, to 3,927.96, while the key index in Shenzhen, the country`s second, smaller market, gained 3.11 points, or 0.3 percent, to 1,083.06. Last week, Beijing increased its estimate of last year`s gross domestic product growth from 10.7 percent to 11.1 percent, bringing it closer to overtaking Germany as the world`s third-biggest economy behind the United States and Japan. Germany`s 2006 output was about $2.9 trillion, with an annual growth rate of 2.5 percent. China`s 2006 output was about $2.7 trillion. Germany has yet to report its April-June growth figures. Li, the statistics bureau spokesman, said he could not confirm projections that China might overtake Germany this year. "One thing is for sure. The difference between the two countries in GDP aggregate is narrowing down," he said. Chinese incomes also rose sharply in the first half of the year, Li said. Those for city dwellers jumped 14.2 percent, while those for rural residents rose 13.3 percent. Government efforts to reduce China`s reliance on exports by boosting domestic consumer spending are starting to take effect, Li said. China`s soaring trade gap has strained relations with Washington and other trading partners, while taxing Beijing`s ability to contain pressure for prices to rise as export revenues pour into the economy. Investment in factories and other fixed assets soared by 25.9 percent in the first half, but that was down 3.9 percentage points from the year-earlier period, Li said. Meanwhile, he said, consumer sales rose 15.4 percent, up 2.1 percentage points from the same period in 2006. Motor vehicle sales soared 36.7 percent.