China's CPI Likely to Rebound in Q4

BEIJING, July 21 -- China's consumer price index is likely to rebound in the fourth quarter of this year, but will maintain stable for the whole year, said Yao Jingyuan, chief economist of National Bureau of Statistics.

    Food prices, which account for 33% of China's CPI, are unlikely to surge fiercely as they did two years ago because the grain harvest was good this year, said Yao, adding that China's CPI will decline in July and August, but will grow in November and December.

    China's producer price index will fall for a relatively long period of time due to oversupply, said Yao. He added that more attention should be paid to month-on-month statistics, noting that China's PPI rose for three consecutive months since April this year.

    China's CPI went down 1.7% from a year earlier in June and decreased 1.1% in the first half of this year, according to statistics released by the NBS last Thursday.

    (Source: China Knowledge)