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China's November CPI to reach 4.7 pct, bank report says

0 CommentsPrint E-mail Xinhua, December 1, 2010
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China's consumer price index (CPI), the main gauge of inflation, is likely to accelerate from October's 4.4 percent to reach 4.7 percent in November, a report issued by the Bank of Communications said Tuesday.

The increase has mainly been fueled by rising food prices, which have begun to decline since the mid-November as the government adopted a number of anti-inflation measures, the report said.

It is predicted that December's CPI figure would slow from November, and the nation's CPI in 2010 would stand at 3.2 percent, exceeding the annual target of 3 percent.

Additionally, upward pressure is still expected on commodities prices in the first quarter of next year, as the Spring Festival holidays are expected to boost demand and chilly weather might harm the production and transportation of agricultural products, the report said.

The report predicted that the momentum of price hikes would be effectively curbed after the second quarter of 2011, as a result of multiple government measures to stabilize prices.

The Chinese government has enacted a series of measures to combat price hikes, ranging from boosting agricultural production, clamping down on farm produce speculation and tightening hefty liquidity.

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