China’s inflation is expected to hit a new high in November on the heel of several months’ boom, increasing possibilities of interest rates hikes, according to the country’s analysts.China consumer product index, the main gauge of inflation, is likely to rise above 4.4 percent in November, according to a consensus forecast made by several financial institutions including China International Capital Corporation (CICC), one of the country’s largest banking company.CICC predicted China’s CPI to rise 4.8 percent in December and decline in the first quarter of next year while remaining modest since then.With CPI running at a high level, the government is likely to raise its interest rates twice by 25 basis points each before 2011, mostly likely in December and the first half of net year, the CICC said in a latest report.The increase of November CPI is projected at 4.7 percent by Dong Xianan, chief analyst from Industrial Securities, who warned over continuing inflation risks.Industrial Bank said the CPI is expected to rise 4.8 percent against the seasonal adjustment, adding that the central bank is likely to continue with its resolve to fight back inflation by hiking interest rate between December 7 to 18.China’s CPI rose 4.4 percent in October, the highest level in two years. Efforts has been stepped up since November by the government to curb recent surge in food prices, and the inflation expectations have been “stabilized,” according to chief economist at the National Bureau of Statistics Yao Jingyuan.
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