NDRC hints inflation to climb

China’s top economic planning agency said inflation will accelerate this month, bolstering analysts’ expectations for the consumer price index to reach 6% in June, the highest level since July 2008, Bloomberg reported. “The overall level of prices remains high and inflation will remain elevated for some months although the overall situation is controllable,” the National Development and Reform Commission (NDRC) said in an announcement on its website. Banks including China International Capital Corporation, Societe Generale SA and UBS AG estimate inflation could accelerate to 6% in June before moderating in the second half. China’s CPI was up 5.5% year-on-year in May, driven by an 11.7% increase in food prices. To subdue inflation, China has raised interest rates four times since September, restricted bank lending and boosted food supplies. However, the central bank has not raised interest rates since April 5, the longest pause since increases began in October.