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CPI to grow 1.8 pct in September y-o-y, BOCOM

BEIJING
2015-09-29 17:04

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China's consumer price index (CPI), the main gauge of inflation, is expected to increase 1.8 percent year on year in September.

The Financial Research Center of the Bank of Communications (BOCOM) made above predictions in a report released on Tuesday saying that the growth of food prices is likely to fall in September and carryover effects may decline 0.45 percentage point to 0.11 percent.

Lian Ping, chief economist at BOCOM, said that food prices were key factors which determined the trend of CPI.

The report estimated that pork prices would rise month on month in the same period, and egg prices may rise accordingly in September as substitutes for meat. Meanwhile non-food prices are expected to remain subdue in September, according to the report.

BOCOM's inflation forecast for this year is less than 2 percent in 2015, which is far below the target of controlling it under 3 percent.

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