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China's CPI to rise in Q4: expert

(Xinhua)
Updated: 2009-08-03 08:45

BEIJING: China's consumer price index (CPI) decline pace would slow down in the second half and the CPI would rise in the fourth quarter and drop about 0.5 percent for the whole year, Lian Ping, chief economist of Bank of Communications, the country's fifth largest lender, told Xinhua Sunday.

Related readings:  China's June CPI falls 1.7%  CPI drops farthest in nearly 40 years  CPI and PPI fall, but deflation threat eases  NBS to add 10,000 CPI survey locations  China's CPI falls, lending spree eases

China's CPI, a main gauge of inflation, dipped 1.1 percent in the first half from a year earlier, according to the National Bureau of Statistics (NBS) figures.

"China might see a CPI rise in the fourth quarter along with the recovery of the economy," Lian said.

He predicted that China would see a moderate CPI rise next year, with the growth pace less than 4 percent.

The Shanghai-based bank said in a Saturday report that China's economy would continue to recover from the world financial crisis in the second half and expand at the rate of 8.5 percent for the whole year.