Shenzhen CPI rises 2.7% in May

SHENZHEN'S consumer price index (CPI) rose 2.7 percent in May, the municipal statistics bureau said Friday.

The rise was due to the increase in prices of pork, eggs and fresh fruits, which became costlier by between 1.9 and 8.4 percent in May compared to the previous month.

A spokesperson surnamed Rong with the bureau said the price of pork increased 3.5 percent in May, or 12.7 percent year-on-year.

"Retail prices of poultry and eggs also rose 1.9 to 3.1 percent in May, or 8.6 to 22.8 percent over the previous year," she said.

Fresh vegetables became cheaper compared to April. The prices of most vegetables fell 6 to 22 percent since April, but still rose 6.3 percent compared to the same period in 2006.

The average retail price of fresh fruits increased 1.9 percent last month, due to high demand. Pears, honey melons and imported oranges jumped 4.7 to 8.4 percent in May.

The prices of alcohol and cigarettes rose 3.3 percent, while miscellaneous services were dearer by 2.5 percent and transportation and communication fees increased by 1.3 percent.

In the first five months of the year, the city's CPI rose an average of 2.7 percent over the same period last year, similar to other cities in China.

Looking ahead, the spokesperson said: "Food prices are likely to remain a volatile component within the CPI."

Local residents said they found the inflation burdensome and would store more frozen pork and poultry to preempt further price increases.

Zhou Xiaochuan, governor of the central bank, said in an interview Saturday that he couldn't rule out raising interest rates again to curb inflation. The central bank increased interest rates twice this year.