Food prices boost CPI in China

May 11, 2012 at 1:44 PM
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BEIJING, May 11 (UPI) -- Sharp rises in food prices have slowed but food costs continued to push inflation in China last month, officials said.

The National Bureau of Statistics said inflation on an annual basis settled down to 3.4 percent in April, the decline largely due to the impact of warmer weather on food prices.

Although showing improvements from March, food prices were still the main driver of inflation in April, Xinhua reported. In April the annual inflation figure for food in China was 7 percent. In March, that figure stood at 7.5 percent.

"We expect that the consumer price index will continue falling in May and June, possibly to below 3 percent. But it will rebound in the third and fourth quarter with a recovery of economic growth," Xinhua quoted Wang Jun, a researcher at the China Center for International Economic Exchanges, as saying.

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