Expert Says China's CPI May Peak in August

China's consumer product index in August is likely to exceed 3.3 percent for July, the highest level the country has seen this year.

China’s consumer product index (CPI) for August is likely to exceed 3.3
percent for July, the highest level the country has seen this year, while for
the rest of the months of the year, inflationary pressures would be eased,
Xinhuanet reported Sunday citing Lian Ping, chief economist at the Bank of
Communications.

Due to the wide-spread European debt crisis and the lingering concerns over
global recovery, the prices for commodities would remain weak, Lian ping told a
forum.

Statistics show that China’s economic growth has slowed, and the supply of
industrial consumer goods are still exceeding demand with some of industrial
products including iron&steel, coal, and cement begin to drop.

However, inflationary pressures will continue due to food price hikes, wages
going up and the reform of resources prices, which will lead to moderate
inflation in the next half, said Lian.