NDRC: Inflation will slow in second half of year

China's inflation rate is likely to slow in the second half of the year, according to Cao Changqing, director of the price department at the National Development and Reform Commission. "It will be a process of slow [price] increases, with the magnitude depending on harvests in the autumn," he said, the South China Morning Post reported. He also said that there would not be any increases in retail fuel and power prices in the near-term, citing rising profits at utilities companies. The consumer price index (CPI) hit a 33-month high in June of 4.4%, driven upwards by rising food prices, which posted a year-on-year increase of 11.3% in June. The government has been concerned that price hikes for staple goods such as pork – which saw a price increase of 60% in June – could trigger social unrest. Cao said that, of the 3.2% CPI rise in the first half of the year, the food price spike contributed 78%.