Economy

Economic planner predicts 2.6% CPI growth in H1

(Xinhua)
Updated: 2010-06-12 17:21

BEIJING - China's top economic planner Saturday forecast a "mild" year-on-year rise in the consumer price index (CPI), a main gauge of inflation, in June, resulting in an average CPI increase of around 2.6 percent in the first half.

The projection by the National Development and Reform Commission (NDRC) came one day after China released its latest economic data.

Related readings:  CPI increases 3.1% in May  CPI hits 19-month high but not all see tighter policy  Price surge in farm products has limited impact on CPI  Speculation has limited impact on China's CPI

The latest estimate was revised up from a 2.5-percent CPI rise the NDRC projected on May 18.

China's CPI hit a 19-month high with a 3.1 percent year-on-year increase in May, surpassing the central government's targeted 3 percent annual inflation limit.

During the January-May period, China's CPI rose 2.5 percent year-on-year.

According to the NDRC's projection posted on its website, China's June CPI will dip slightly month-on-month, but still post a "mild year-on-year increase" due to the low comparison basis in the same month last year.

The NDRC said positive factors for basic price stability were on the increase, citing sharp falls in international commodities prices, the government's macro control policies and a crack-down on farm produce speculation as well as a possible good grain harvest this summer.

Sheng Laiyun, spokesman for the National Bureau of Statistics, said Friday at a press conference that China had the basics for keeping prices under control this year.

"Although China faces quite a lot of pressure, the 3-percent target (for the whole year) is still possible with effort," he said.