CICC Says Inflation Seen To Slow In May
Inflation might have shown a marked deceleration in May as food prices dropped, offsetting hikes in non-food prices, according to the China International Capital Corp.
China’s consumer price index, the main gauge of inflation, probably rose 7.7 percent to 8.1 percent year on year last month, CICC said in a report.
The CPI jumped 8.5 percent in April, up from 8.3 percent in March and near the 12-year-high of 8.7 percent in February.
CICC said consumer prices would drop in the coming months with falling food prices.
Prices of food, a major driver behind China’s high inflation, would likely continue falling because of increasing supplies and an expected bumper harvest.
The authorities were unlikely to unveil new tightening measures or raise fuel prices in the short term following the devastating earthquake in Sichuan Province on May 12 and in the face of high inflation, CICC said.
Tags: CICC, CPI, food, inflation