Bank report: China's October CPI will fall 0.7%

Bank of Commerce, one of the largest Chinese mainland-based commercial lenders, recently unveiled a report, predicting that China's October CPI would decline by 0.7 percent year on year.

Due to falling prices of agricultural products, the CPI decline rate would not see a significant contraction in October, although tail-raising factors would drive up CPI by 0.3 percent, said the report.

The bank also predicted that CPI may start to grow in November, thanks to the seasonal changes in food prices, narrowing decline rate of non-food prices and weakening negative impact of the tail-raising factors. It has lowered estimation of China's CPI in 2009 to negative 0.8 percent, as consumer prices were rising more slowly than expected.

The report noted that consumer prices are showing a tendency towards rebounding. Consumer prices in China will pick up its upward trend in 2010 and CPI growth rate may stand at 4 percent, it expected.

By People's Daily Online