China's consumer price index (CPI), a major indicator of inflation, might increase faster in October than in September due to increasing vegetable prices, the Oriental Morning Post
reported, citing forecasts from China’s top economic planner, the National Development and Reform Commission (NDRC). The prices of 15 types of produce were tipped by the commission to rise 11.5% on average in October, offsetting a 2.8% and 3.1% drop in pork and egg prices, respectively. CPI gained 6.2% year-on-year in September. Meanwhile, Goldman Sachs has predicted the index will rise to 7% or even higher in October, the Economic Observer
reported. The investment bank adjusted its prediction as food prices rose in late October after a slight fall in September, but said that the main inflationary pressures on the economy came from increasing production costs on the back of higher prices of raw materials such as oil, rather than continuing supply shortages. Goldman predicted China's central bank would increase interest rates twice more this year as a result of increased inflationary pressure. However in today’s feature story in The China Perspective
, China Business News
looks at Tsinghua University’s 3rd annual conference on China’s macro economy held last week. According to the newspaper, some of the academics attending called for calm over inflation figures, claiming high inflation would be short-lived and could help stabilize structural imbalances in China's economy.