CPI rise may signal bank tightening

BEIJING - April consumer prices rose at the fastest clip in 18 months, which could result in banks' reserve ratio being raised in June and interest rates in the next quarter, analysts said.

The National Bureau of Statistics (NBS) reported on Tuesday that the consumer price index (CPI), a key gauge of inflation, rose 2.8 percent year on year, 0.4 percentage points higher than in March.

Lu Zhengwei, a senior economist with Fuzhou-based Industrial Bank, said inflation would continue to rise before peaking between August and October, and the central bank may react by raising the interest rates before September.