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BIZCHINA> Top Biz News
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BoCom expects CPI to drop 1.1% in April
By Cai Muyuan (chinadaily.com.cn)
Updated: 2009-05-07 11:42 China's consumer inflation will continue to see negative growth in April by three consecutive months, the research center of the Bank of Communications (BoCom) said in a forecast released on May 5.
The bank's research shows that food prices will be steady overall despite some downward pressure. The tail-raising factor may bring consumer prices down by 1.9 percentage points and is the main reason for the falling CPI. As the tail-raising factor will be reduced in the second half of the year, BoCom believes the CPI will go up. The continuous negative growth will be terminated by economic recovery of the second half of the year and consumer prices will resume their healthy growth if things go well. The bank also expected inflation will not be a threat this year. (For more biz stories, please visit Industries)
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