BEIJING: China’s consumer prices will continue to rise in July but the growth rate will likely slow due to tame food prices and a weakening carry-over effect, according to a research note by the Bank of Communications. The consumer price index (CPI), a main gauge of inflation, is expected to increase 1.4 percent year on year this month, retreating slightly from the 1.5-percent expansion registered in both June and May, the research note said.
The bank mainly attributed the lower rate to lackluster food prices, which will edge down 0.4 percent on a month on month basis. Besides, the carry-over effect will become weaker after hitting the highest level this year. Non-food price growth meanwhile will basically maintain the same pace with that of June. The National Bureau of Statistics will release its official CPI data on Aug 9.
