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Business / Economy

China's Dec inflation forecast at 2.3%

(Xinhua) Updated: 2013-01-05 18:22

BEIJING - The growth of consumer prices is expected to have accelerated in December, as bad weather has decreased food supplies, according to results from a recent survey by Xinhua News Agency.

The average forecast for the December growth of the consumer price index, a main gauge of inflation, stood at 2.3 percent, according to a survey conducted among financial institutions and economists.

The rate was higher than the 2-percent growth logged in November and 1.7 percent in October, which at that time marked a 33-month low, data from the National Bureau of Statistics (NBS) showed.

Snowy weather and low temperatures have affected the production and transportation of vegetables, the prices of which have risen for eight consecutive weeks since November, according to the survey.

The price of pork, a staple meat, also increased on a monthly basis due to surging demand after temperatures dropped.

Founder Securities estimated that food prices, which account for a third of the prices used to calculate inflation data, may have grown 2 percent from November to December.

Participants in the survey agreed that consumer prices are likely to have entered a new upward cycle. However, the inflation rate will hit a temporary low in January because of a bigger comparison basis.

The NBS is scheduled to release inflation data for December on Jan 11.

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