China consumer prices to rise 4pc in Dec

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BEIJING, Jan 5 (Xinhua): China's inflation rate may rise 4 per cent in December from a year earlier, driven by higher food prices in the upcoming festive season, experts said Thursday.
Food prices, especially of vegetables, have been rising recently due to seasonal factors, while prices of other products are making smaller gains, the China Securities Journal cited Chu Jianfang, chief economist with CITIC Securities, as saying.
Chu estimated that consumer prices in December will expand 4.1 per cent year on year, down 0.1 percentage point from November.
China Merchants Securities (CMS) holds a similar view, forecasting the consumer price index (CPI) in December to climb 4 per cent, and the producer price index (PPI) to gain 1.7 per cent.
CMS analysts said food prices would keep rising until Spring Festival, which falls on January 23 in 2012.