Consumer price inflation predicted to hit 6.2% in June

China’s consumer price index (CPI) is predicted to rise by as much 6.2% in June, up 0.7% percentage points from May, state media reported. The 6.2% figure was forecast in a report by China International Capital Corp; other projections by investment bank economists are all over 6%. The central bank admitted that inflation remains high in a statement on Monday, but said that the economy continues to grow at a “stable and relatively rapid pace.” It said it will maintain a “prudent” monetary stance and use multiple tools to manage liquidity and bring inflation under control. Food prices, which comprise about 30% of the CPI basket, have been driven upward primarily by pork, prices for which have been increasing by over 11% per month since April. Data from the Ministry of Commerce showed that pork prices had increased for 10 consecutive weeks by the end of June, up 13.3% for the month. Non-food prices, in particular rent and electricity, are also expected to increase. Overall living expenses increased 6.1% in May year-on-year.