Feb. 14, 2012 (China Knowledge) - China's consumer price index (CPI), the major gauge of inflation, is expected to decline below 4%, or even close to 3%, in February, said Zhou Wangjun, a deputy director of the price department of National Development and Reform Commission (NDRC)
The country would see an estimated noticeable decline in inflation level from last year, said Zhou, adding that the inflation rate for this year is likely to be affected by global market volatilities, especially the oil prices.
In January, China's CPI raised 4.5% from a year earlier, higher than the 4.1% increase in December and 4.2% increase in November. Food prices even went up 10.5% year on year last month, which contributed 3.29 percentage points to the overall CPI growth.
Zhou attributed the CPI increase in January principally to strong consuming demand during the New Year’s Days and Lunar New Year’s holidays, as well as raised transportation costs of agricultural products due to bad weather last month.