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CPI, PPI in China to drop in September

(China Daily)
Updated: 2008-10-11 09:13

China's consumer price index (CPI) and the producer price index (PPI) for the month of September are expected to drop, according to analysts.

Taking into account food prices and last September's 6.2 percent CPI increase, inflation in September 2008 is likely to drop for the fifth consecutive month, analysts said. Rising food costs are one of the primary factors leading to CPI inflation in China.

The PPI, which reflects manufacturing costs, was also expected to fall from a record high of 10.1 percent in August, as a result of lower commodity prices on the international market.

Ha Jiming, chief economist of China International Capital Corporation Limited, forecast September's CPI would fall from 4.9 percent in August to around 4.5 to 4.8 percent.