SteelOrbis Shanghai
China's consumer price index (CPI) rose 3.4 percent year on year in May 2007, while consumer inflation for the first five months of the year increased 2.9 percent from the same period last year.
China's CPI has been higher than the government's warning level of three percent for several months now. As a result, the People's Bank of China (central bank) is very likely to raise the interest rate further in the future.