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Inflation in China will be able to remain moderate throughout 2021, with food prices remaining stable on sufficient supply and higher upstream costs having limited impact on the consumer market due to adequate competition, said Fu Linghui, spokesman of the National Bureau of Statistics at a briefing on Wednesday.
Demand has not yet returned to the pre-pandemic level, while production maintains rapid growth, which will not support substantial price increases, said Fu, adding that the absence of strong stimulus is also conducive to price stability.
China's May CPI climbed to an eight-month high of 1.3% y/y while PPI soared to the highest in over 12 years with a gain of 9.0% y/y.