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China's Feb. CPI to top 3 pct: analyst

0 Comment(s)Print E-mail Xinhua, February 27, 2013
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China's consumer price index (CPI) may climb by over 3 percent in February, as the week-long Spring Festival holiday pushed up demand, an analyst said Wednesday.

Lu Zhengwei, chief economist with Industrial Bank, forecast that the CPI, a main gauge of inflation, may grow by 3.2 percent year on year, up from 2 percent in January.

Food prices, which account for about one-third of prices used to calculate the CPI, will rise by more than 3 percent from January, due to surging demand around the Spring Festival, the most important traditional Chinese festival for family reunions, Lu said.

Data from the Ministry of Commerce show that farm produce prices in major Chinese cities declined last week, ending seven consecutive months of gains.

Historical data indicate that prices of non-food products usually rise in the month of the Spring Festival from the previous month, which will also help push up price levels, Lu said. Endi

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