The growth of China's Consumer Price Index (CPI) will reach 3.15 per cent in the first half of this year and the whole year's growth will be kept within the range of 3 per cent to 3.5 per cent according to a recent research report completed by the research group of the Research Bureau under the People's Bank of China.

The report said that the main factors influencing the future price index include the price adjustment of public services, resident income, the rapid growth of consumer goods and the lagging Producer Price Index (PPI). In addition the related factors also include the following:

First, the existence of the rebounding basis for investment will bring about price growth pressure. The report said newly opened projects are on the increase with larger scope of the projects under construction. Enterprises are richer in their funds. The sources proportion for enterprises' self-raised funds and other funds has increased to some 70.77 per cent of the total investment funds. As a result, there exists basis for investment rebounding.

Second, the rapid rollback of monetary supply and robust monetary policy are in favor of stable future prices.

Third, the international price recovery brings about imported inflation pressure. The report said there are evident signs for the inflation rate rise in many countries in the world, which will bring about upward pressure for the future import prices of the country. So there will be a push for China's gross price index.

Fourth, there still exists expected inflation.

By People's Daily Online