According to the predictions from a few agencies, China's Consumer Price Index in June may remain the same with May, but the Producer Price Index may see a decrease for the first time.

China's CPI reached 3.1 percent in May, exceeding this year's target of 3 percent for the first time; The PPI in May climbed up to 7.1 percent, still in a successive increase for six months.

The data from the Ministry of Commerce indicated that the prices of farm produce continued to drop in June, especially of vegetable prices, which brought a big decrease of food prices. The price index of the means of production continued to drop, from -1.8 percent in May to -2.6 percent in June.

Based on the above statistics, China International Capital Corporation (CICC) predicted that for June the CPI remained between 3 percent and 3.2 percent, about the same level as in May, while PPI may have fallen to 6.7 percent, the first decrease this year.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.

Go to Forum >>0 Comments