Inflation rates to be higher in May
Economists are saying the there is a possibility that inflation will be higher in May than the inflation rates that is recently experienced in June. The National Development and reform Commission states the government have already taken measures to control inflation and is slowly taking effect. Prices of commodities and goods will remain in control this year.
Prices will still be high in the coming months but the government will be able to control the price situation. Analyst already expected the inflation was going to peak to 6 percent in June or July, and they were hoping that it will slow down because of the control measure implemented. The government central bank have already released measures in the past couple of months which includes increasing reserves and interest rates.
The impact of heavy flooding and droughts played the prices on agricultural products, therefore raising its prices. The NDRC said the the country suffers from such disasters every year and this year the disasters were limited in certain regions. Pork price increase are still in the reasonable range and there will be no sudden increase of its price in the second half of this year since supply is expected to grow.