(MENAFN) According to a research by the Bank of Communications in China, the inflation rate in the country is expected to continue rising in May because of the carryover effect despite lower food prices.
The main measurement for inflation, the consumer price index (CPI), is forecasted to post increase by 1.4-1.6% year-on-year in May, however; the expected rise will be faster than the 1.2% expansion registered in April and 0.9% in March.
While the bank expected food price growth to slow markedly, it said that the higher rate in due to stronger effect.
Moreover, in Q2 of the current year, a weak demand will be posted and tighter currency liquidity will weigh on economy, whereas rising labor costs and shifting economic structure will affect prices to increase.
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