BEIJING -- China's central bank said Tuesday that inflation pressures
still exist despite lower consumer price index (CPI) in the first three
Prices for both consumer goods and production materials have risks of
going up in the future, said a report on currency policy in the third quarter
released Tuesday by the central bank.
China's CPI rose 1.3 percent in the first nine months, 0.7 percentage lower
than the same period last year.
The central bank said that China's consumer goods would be in oversupply in
the future period. However, as China speeds up its pricing reform on energy
products, prices of water, electricity, oil and gas would continue to be raised.
Price hike of crude oil and non-ferrous metal in the international market
would push the prices of concerned products high, says the report.
Stricter requirement on safe production and social security would increase
costs of companies and the strong momentum of investment would bring more
pressures for price rise, it says.
A survey by the central bank in the third quarter shows that 44.2 percent of
the urban depositors expect the price level to rise, 6.8 percentage points
higher than the figure in the second quarter.