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China's CPI to fall in August, but at slower rate: report

(Xinhua)
Updated: 2009-09-02 13:29

China's consumer price index (CPI), an important gauge of inflation, might still see a decline in August, but the rate of decrease would be smaller than July's, according to a report released Wednesday by the Bank of Communications (BOCOM), China's fifth largest lender.

Related readings:  China's CPI to fall 0.5% in 2009  State firms' profit decline slowing  China leads world toward recovery  China's June CPI falls 1.7%, PPI down 7.8%

The CPI would edge down by around 1.2 percent in August from a year earlier, said the report.

It could be the seventh consecutive month of CPI decline since the index dropped 1.6 percent in February, but the year-on-year decline rate in August would be lower than the 1.8 percent in July, Tang Jianwei, a senior analyst with the Shanghai-based BOCOM, told Xinhua Wednesday.

"China's CPI might fall 0.5 percent year-on-year for the whole of 2009. The CPI will probably rebound to growth next year. It is predicted that the CPI in China will rise 4 percent year on year in 2010," Tang said.

The National Bureau of Statistics is scheduled to publish the official CPI figure for August on September 11.