China’s CPI Projected to Slide Below 4 Percent

Posted by Reading Time: < 1 minute

Nov. 28 – A chief economist at the National Bureau of Statistics said during a forum that China’s inflation rate is forecast to drop below 4 percent in November and December.

Yao Jingyuan’s forecast contrast from a report from the Bank of Communications which predicted that consumer price index (CPI) in November would decrease to 2.8 percent, its lowest level in 17 months.

According to the bank report, decreasing food prices should lead the slide in the CPI and that the index may drop further to 2 percent in December.

Yao told China Daily that China’s foreign exchange reserves already reached US$2 trillion.

Numbers from the National Bureau of Statistics show that since the end of September, the country’s foreign exchange reserves already amounted to US$1.9 trillion, an increase of 33 percent from last year.