China’s CPI is expected to rise moderately in the next stage, driven by rising services prices over the holiday season, said Liu Aihua, spokesperson at the National Bureau of Statistics, on Saturday.

Looking ahead, prices of vegetables may fall slightly as supply increases due to cooler weather and less flooding, but food prices will remain stable overall, Liu added.

Pork prices in China, a key component of CPI, will continue to support inflation towards year end due to base effects, but will likely stabilise following their 38% increase since January MNI reported. (See MNI INTERVIEW: China Pork Prices To Support Inflation)