On April 20, Zhou Wangjun, deputy director of the pricing department of China's National Development and Reform Commission, stated that he expected that China's consumer price index (CPI) will remain high in Q2 based on the current international and domestic situation. Mr. Zhou added that the current price levels in China are still under control.
The recent tightening of real estate market regulations in China has lead to a slight price drop in this sector. The food price, another factor contributing to the high CPI, is expected to remain more or less stable in Q2 with perhaps a slight decrease. However, against the background of excess global liquidity, the NDRC official said he foresaw a high CPI figure in Q2.