June CPI growth to drop below 3%

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China's Consumer Price Index, a main gauge for retail inflation, will grow slower in June, leaving room for fine-tuning of the fiscal policy, Economic Information reported Wednesday, citing analysts.

The CPI will grow at 2.4 percent year-on-year due to enough supply of vegetables and declining prices of farm produce, predicted Tang Jianwei, an analyst at the Bank of Communications Financial Studies Center.

Gao Yuan, from Haitong Securities, predicted the June CPI growth rate to be at 2.3 percent as falling prices of commodities will lead to drops in prices of non-food products or services.

The CPI grew at 3.0 percent year-on-year in May.