China's consumer inflation is expected to slow in the fourth quarter after exceeding 5 percent in recent months, state media said on Sunday, citing a forecast by the State Development and Reform Commission.
Consumer inflation hit a seven-year high of 5.3 percent in July and August, fanning speculation that the central bank might have to raise interest rates for the first time in nine years.
"Currently the general level of consumer prices has already showed a trend of stabilising, and the rate of inflation is expected to decline in the fourth quarter," the Economic Daily quoted an unidentified commission official as saying.
It did not elaborate. Separately, the Xinhua news agency quoted the commission as saying that grain prices soared 28 percent in the first eight months year-on-year, driving food prices 10.6 percent higher and contributing 87.5 percent to the country's consumer inflation.
"With expected stabilising grain prices, the prices of non-staple foodstuffs, such as meat, eggs and milk which depend on grain as a raw material, would decline," Xinhua said.
Last month, state media quoted Xu Lianzhong, an economist at the State Development and Reform Commission, as predicting that China's inflation could ease to 2.8-3 percent in the fourth quarter.
Government measures, such as ordering banks to keep more money in reserve and imposing curbs on investment projects in red-hot industries such as property, steel and cement, have helped cool an economy that grew 9.6 percent in the year through the second quarter.
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