China June Inflation Rate May Be Peak of Cycle, Citic Says

China’s June inflation rate of 6.4 percent may be the peak this inflationary cycle as price increases are slowing on a month-on-month basis, according to Citic Securities Co.

Consumer prices may rise about 6 percent this month and the central bank isn’t likely to raise interest rates the rest of the year, analysts led by Zhu Jianfang wrote in a report today. The banks’ reserve-requirement ratio is expected to be lifted two or three times, it said.

Bloomberg

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