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Food Price Spike Likely to Push June CPI over 4%
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China's consumer price index (CPI) in June may have exceeded 4 percent from a year earlier due to higher food prices, domestic securities analysts told China Business News, expecting more tightening monetary policies to come out.

 

A 4 percent year-on-year level is already passing an alarm line the government would withstand, said Shenyin Wanguo Securities analyst Li Huiyong, urging the government to readjust the low real interest rate.

 

Li expected another interest rate hike in the third quarter of this year to curb excessive investment.

 

For more details, please read the full story in Chinese ( http://www.china-cbn.com/s/n/000002/20070710/000000072534.shtml).

 

(China.org.cn July 10, 2007)

 

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