Source: CCTV.com

11-14-2007 08:57

The country's consumer price index, or CPI, rose 6.5 percent year on year in October. The National Bureau of Statistics released the figure Tuesday, citing higher food prices as the main cause. Officials say more tightening measures will be adopted to ease inflationary pressure.

The CPI, a main gauge of inflation, remained high in October.

The 6.5 percent increase matched the figure in August, and was higher than the number reported in September.

The National Bureau of Statistics says the rise was largely due to higher pork and food prices.

Food prices jumped over 17 percent last month, slightly higher than September, but a bit lower than August.

Officials say the government will continue to adopt tightening measures, to ease pressures that include excess liquidity and a huge international payments surplus.

They say the economy is not overheated yet, but a high CPI is a warning signal.

Last Saturday, the central bank announced a rise in the reserve ratio for commercial banks. The move to curb heated investment growth will take effect in late November.

Economists from the statistics bureau also say if the measures are not effective, and the next two months see new highs, the full year CPI will top 5 percent.

 

Editor:Xiong Qu