China’s CPI increase eases in April
China's consumer price index rose at its slowest pace in the last 18 months in April, but analysts warned that the price relief may be short-lived. According to the statement made by China's National Bureau of Statistics (NBS), the country's CPI rose 1.8% year on year in April after climbing 2.7% in March. Food prices, which account for one third of China's inflation index, showed a growth of only 3.1% from a year earlier. Slowing consumer prices also ease the expectations that central bank to raise interest rates. The central bank raised interest rates for the first time in nearly decade in October 2004 to cool off inflation and prevent expansion in overheated sectors such as cement, steel and construction. However, analysts are quite concerned about the inflation outlook because of rising prices of diesel and electricity and higher raw material prices as well as increasing labor costs.