China's CPI rises 1.4% in May

SteelOrbis Shanghai China's Consumer Price Index (CPI) in May rose 1.4 percent year on year, said sources from ational Bureau of Statistics. The CPI in urban districts rose 1.4 percent and that in rural areas reported a 1.2 percent rise. In view of different categories, the price of food, non-food, fast moving consumer products, and service indexes rose 1.9 percent, 1.1 percent, 1.2 percent and 2.0 percent respectively. The cumulative CPI from January to May increased 1.2 percent compared with the same period last year. The low-level of CPI led Central Bank to delay considering an increase in the interest rate. However it also results in domestic over-liquidity, being a potential threat of overheated economy. Currently, “high growth rate and low inflation rate” are still the main problems for China's macro-economic environment.