Center

CPI for 2007 may beat 3%

(chinadaily.com.cn)
Updated: 2007-06-20 14:25

Driven by surging food prices, China'sconsumer price index(CPI) for the entire 2007 may exceed three percent, according to a report released by the State Information Center's economic prediction department.

Related readings:  CPI rise probably won't signal serious inflation  Inflation hits 27-month high with CPI up 3.4%  Figures indicate risk of overheated economy  More controls pledged on pork price to ensure stable supply

The report shows the CPI has kept a rising momentum since last October. This April's CPI dropped a little from March, and May's rose compared to April. However, regardless of seasonal factors, the CPI's annualized month-on-month growth rate exceeded theyear-on-yearrate in both April and May this year.

The CPI's accelerating growth rate was mainly driven by the increasing prices of grains, meat and eggs, and the rise in service prices also led to the rapid growth of non-food prices. Affected by the production cycle and international market prices, this momentum will probably remain to the end of this year, according to the report.

The report says, the CPI's growth rate will climb to a peak at the turn of the third and fourth quarter. Considering the price rise expectations from consumers and manufacturers, as well as the continuous bullish real estate prices, this report believes that the CPI for 2007 will break the three percent target set by the central bank.