Citing Li Chao, Chief Analyst with Zheshang Securities, China’s Securities Times reported that the average May Consumer Price Index (CPI) estimate by 19 Chinese financial institutions was 2.9%, lower than 3.3% in April.
“Inflation has continued to ease as pork prices fell from their peak. “
“Lower inflation increased the possibility that the central bank would cut the benchmark interest rates for deposits and also cut rates for Medium-term Lending facilities to lower borrowing costs for companies.”
China’s CPI for May will be released on Wednesday.