CPI growth slows as food prices moderate
The mainland's inflation rate eased to 3 per cent last month, down from 3.3 per cent in March, but remained at the upper limit of the central bank's target level, the government said yesterday.
For the first four months of the year, the Consumer Price Index rose 2.8 per cent year on year, up from the 1.5 per cent year-on-year rise recorded in the same period last year, the National Bureau of Statistics said.
Producer prices rose 2.9 per cent year on year last month, up from 2.7 per cent in March, the bureau also said.
Economists said the inflation rate remained relatively high and reinforced the likelihood of the central bank raising interest rates or taking other tightening measures in the near future. Rising inflation has put real deposit rates well into negative territory and is helping to fuel a growing stock-market bubble.
The People's Bank of China aims to keep inflation within 3 per cent this year and officials have repeatedly said they are concerned about rising prices.