China’s consumer price index (CPI) trend rules out the possibility of China falling into deflation this year, the People’s Daily said Monday, citing a report by the State Information Center. The center expects the annual CPI this year to rise 2.5 percent, compared with the government’s 3.5 percent target. Deflation is defined as a year-on-year CPI growth of less than 1 percent for six consecutive months, according to the newspaper. The center based its forecast on the country’s slowing economy, production overcapacity, bumper crop harvests and ample stock of live hogs. Meanwhile, Bank of Communications Co. Ltd. (03328.HK, 601328.CN) said the CPI is expected to have risen between 2.4 and 2.6 percent in March, compared with 2 percent a month earlier, while CPI growth is forecast to be lower than 2.5 percent for the first quarter and 2.6 percent for the whole year, the report said.
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