Chinese Inflation Forecasted at 2.6 Percent in June

China’s consumer price index (CPI) is likely to grow 2.6 percent in June from a year earlier, up from the 2.1-percent recorded in May, the Bank of Communications has predicted.

The official CPI, a main gauge of inflation, is due to be released by the National Bureau of Statistics (NBS) on Wednesday.

A rebound in pork prices may boost the June CPI, as food prices account for nearly one-third of the prices used to calculate the CPI, said Lian Ping, the bank’s senior economist.

The bank expects the CPI for the first half of 2013 to rise 2.4 percent year on year, well below the government’s target of 3.5 percent.

Driven down by slumping vegetable prices, the CPI grew 2.1 percent year on year in May, down from 2.4 percent in April, according to the NBS.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza