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China's July inflation rate to drop slightly: Research

Xinhua | Updated: 2017-07-31 10:06
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A woman chooses canned food at a supermarket in Qingdao, Shandong province, on Sep 9, 2016.[Photo/For China Daily]

BEIJING - China's consumer prices will continue to rise in July but the growth rate will likely slow due to tame food prices and a weakening carry-over effect, according to a research note by the Bank of Communications.

The consumer price index (CPI), a main gauge of inflation, is expected to increase 1.4 percent year on year this month, retreating slightly from the 1.5-percent expansion registered in both June and May, the research note said.

The bank mainly attributed the lower rate to lackluster food prices, which will edge down 0.4 percent on a month on month basis. Besides, the carry-over effect will become weaker after hitting the highest level this year.

Non-food price growth meanwhile will basically maintain the same pace with that of June.

The National Bureau of Statistics will release its official CPI data on Aug 9.

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