CPI may fall in June

China’s consumer price index (CPI) may fall in June as food prices continue to decrease, Bloomberg reported, citing Shanghai Security News. The report cites an unidentified source with close connections to China’s National Development and Reform Commission. However, the figures may still represent a 3.4% to 3.5% increase on the previous year, and Zhou Baoliang, a researcher with the State Information Center, predicts a year on year rise of 4% for the month of July. Many analysts watch fluctuation in China’s CPI with intense interest, as a massive government stimulus in 2008 and 2009 has sparked fears of inflationary repercussions. While short-term inflation seems to be moderating, year on year levels continue to creep upwards.