Economy

China CPI to be around 3% in May, June: NDRC

(Agencies)
Updated: 2010-05-18 13:46

 

Related readings:  China April CPI up 2.8%  CPI rise may signal bank tightening  China's April CPI up 2.8%, further rises expected  Surging food prices to drive CPI in April

China's consumer price index (CPI), a main gauge of inflation, is expected to grow by about 2.5 percent for the first half of this year, the National Development and Reform Commission (NDRC) said in a statement released here Tuesday.

The top economic planner projected a 3 percent increase for May and June due to carryover effects, or negative CPI growth in the same period last year and 1.9 percent growth last December.

China's CPI rose 2.8 percent in April, and 2.4 percent in the first four months this year.

Rising prices of vegetables, fruits and grain in the past three months have caused much public discussion, since worsening inflation is feared as the government is expected to raise the price of energy and commodities to encourage higher energy efficiency and resource conservation.

But the NDRC said inflationary pressures were likely to decrease, adding that vegetable prices went down this month due to rebounding supplies amid warmer temperatures.

The Chinese government has set the CPI target of around 3 percent for the entire year.