The Consumer Price Index (CPI) is expected to rise by 4.6 percent this year and by around five percent in the first half of 2008, according to a forecast by the Research Bureau of the People’s Bank of China.

GDP growth is expected to be 11.6 percent in 2007, and 10.8 percent in 2008.CPI is expected to be 4.6 percent in 2007 and 5.0 percent in 2008, according to the research report.

The report said the current rise in the general level of prices is evident as the country has been experiencing strong growth in demand and the output gap expansion.

China’s future price level are expected to be affected by international non-ferrous metals and oil prices possibly rising, the pressure on upward food prices, the increasing labor costs of the unit output, and strong inflation expectations, the report concluded.