Finished product prices rise in May

Mainland prices of finished industrial products leaving the factory rose 5.7% in May compared to the same period last year, according to the National Bureau of Statistics. Finished industrial product prices, which are a major component of the consumer price index (CPI), used to calculate inflation, were 0.7% higher in May than in April. CPI rose 4.4% in May and 3.8% in April compared to the same periods in 2003. Analysts said that rises in CPI could show inflation but other statistics, including industrial output and money supply, which both decreased in May, show economic cooling measures taking effect. People's Bank of China officials said the bank may raise interest rates as an additional cooling measure if CPI continues to increase.