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China's February CPI forecast at about 2.5 pct: report

Source: Xinhua| 2018-03-03 16:42:05|Editor: Xiang Bo
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BEIJING, March 3 (Xinhua) -- China's consumer price index (CPI) growth for February, a main gauge of inflation, is expected to pick up to 2.5 percent, according to a report from China International Capital Corporation(CICC).

The Beijing-based investment bank said the CPI growth for February is expected to be driven by price rises in food and services as the Spring Festival holiday fell in mid-February this year compared with late-January last year.

"Prices of food and services tend to spike around the Spring Festival holiday. Year-on-year CPI inflation may jump in February due to a low base last year driven by the January Lunar New Year," said the report.

CICC forecast that CPI may moderate in the coming month, as high-frequency data indicate a gradual decline or normalization of food prices post holiday.

CPI growth was 1.5 percent year on year in January, down from December's 1.8 percent, according to the National Bureau of Statistics (NBS).

The February CPI is due to be released by the NBS on March 9.

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