Central bank: CPI will exceed 3% this year

China's consumer price index (CPI), a key inflation indicator, reached 3.5% in the first seven months of the year and is likely to exceed 3% for the whole year in spite of macro controls imposed by the People's Bank of China (PBOC), according Shanghai Securities News (in Chinese). Food prices increased 8.6% during the period, accounting for 80% of the total price increase, said PBOC vice president Su Ning at a press conference held by the State Council press office. Su added that once food prices are brought under the control, inflation will be restrained.