Analysts: April CPI to remain high

China’s consumer price index is likely to remain high in April, possibly reaching growth of 5.2-5.5% year-on-year, state media reported, quoting Peng Wensheng, the chief economist at China International Capital Corporation, an investment banking and research company. Sustained inflation growth may push the People’s Bank of China to raise banks’ reserve requirement ratio for the 11th time since the beginning of 2010 and increase benchmark interest rates again during the second quarter. April inflation may be boosted by non-food prices, which have ticked up by 0.2-0.4% from March, Peng said. Lu Zhenwei, the chief economist at Industrial Bank Co (601166.SH), issued a similar forecast, saying that while food prices are likely to decrease slightly in April, CPI will be driven by surging oil, rent and industrial product prices. Lu also forecast that new renminbi loans may have surpassed RMB700 billion in April (US$107.7 billion). The country’s statistical bureau is expected to release inflation figures and other economic data for April on May 11.