China's December inflation forecast at 2.3%

Source: Xinhua | 2016-12-30

CHINA'S Consumer Price Index (CPI), a main gauge of inflation, is likely to increase 2.3 percent year on year in December, staying flat with November, according to an industry report.

Annual CPI growth will be around 2 percent, well below the official target of around 3 percent, said Lian Ping, chief economist with the Bank of Communications, in a report.

Food prices, accounting for one-third of the CPI calculation, will be a major driver pushing up consumer prices in December, as surging demand ahead of New Year's Day and the Spring Festival holiday will boost consumption.

Non-food prices will edge up by 1.8 percent to 2 percent in December, Lian said.

China's CPI grew 2.3 percent year on year in November, up from October's 2.1 percent, according to the National Bureau of Statistics.