Economy

China's 2010 CPI to exceed annual target of 3%

(Xinhua)
Updated: 2010-11-09 22:35

BEIJING - China's consumer price index (CPI) is expected to rise by slightly higher than the government's target of 3 percent this year, Zhang Ping, head of the National Development and Reform Commission, said Tuesday.

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Besides upward pressure on commodities prices due to natural disasters and imported inflation, loose domestic liquidity and speculation factors have also contributed to the prices hikes, Zhang said at a coal industry conference, adding that the government is paying close attention to domestic commodities prices, especially farm produce prices.

Zhang also said that edible oil is plentiful, though cotton and vegetables are projected to be in short supply during the rest of the year.

Additionally, food prices, which account for one-third of weight in calculating the CPI in China, climbed 8 percent in September, pushing the CPI to reach a 23-month high of 3.6 percent in September.