Beijing, June 28 (IANS) China’s inflation is likely to grow at a slower pace in June due to a milder-than-expected increase in food prices, a research by Bank of Communications (BOCOM) showed.
BOCOM forecast the consumer price index (CPI), a main gauge of inflation, will rise 1.9 per cent year on year this month, slightly down from two per cent in May, Xinhua news agency reported.
Food prices, which account for a fifth of the CPI calculation, will post an increase of between 4.4 and 4.9 per cent, narrowing from the previous month, as increased supply has subdued prices, with vegetables, beef and mutton reporting price drops on a month-on-month basis.
Growth of non-food prices are expected to remain moderate, up by 1.1 to 1.2 per cent.
The bank expects the CPI to remain stable throughout the remainder of year, but food prices, including pork and vegetables, may still see sharp increases due to supply shortage.