Central bank chief expects lower CPI for summer
30 June 2008
People's Bank of China governor Zhou Xiaochuan said that easing food prices could lead to a slowing in China's consumer price index (CPI) this summer, state media reported. "We anticipate that in summer, because of a good harvest and some supply-side policy, inflation, especially food inflation, could slow down a little bit," Zhou told reporters on the sidelines of a conference in Basel, Switzerland. He added that rising energy and other commodity prices could "put additional pressure on inflation." China's CPI increased 7.7% year-on-year in May, down from a 12-year peak of 8.7% in February.