Morgan Stanley tips new round of energy price hikes

Morgan Stanley said it expects China's CPI, a gauge of inflation, to drop from 6.3 percent in July to 5.5 percent in August, paving the way for another round of energy price hikes in the coming months.

"With the successful conclusion of the 2008 Beijing Olympic Games, Chinese policymakers will focus once again on macroeconomic management, so energy price normalization is likely to feature prominently in the post-Olympic policy package," said Morgan Stanley analyst Wang Qing.

The government raised gasoline and diesel prices by 17-18 percent in June, while electricity charges for commercial units went up by 0.025 yuan per kWh from July 1.