CHINA’S consumer price index (CPI), the main gauge of inflation, would rise 3.8 percent in the fourth quarter, the State Information Center (SIC) forecast Friday.

    In a report in the China Securities Journal, SIC, a National Development and Reform Commission (NDRC) think tank, said the CPI for the whole year was likely to slightly exceed the government’s target of 3 percent, but still “within tolerance.”

    “The steep rise in the prices of edible oil, sugar and cotton are the major impetus for the higher figures,” the report said.

    The report noted “imported inflation will exacerbate,” with the weakening U.S. dollar, a result of a second round of quantitative easing by the Federal Reserve. This would result in rises in the price of major commodities like gold, nonferrous metals and crude oil.

    In addition, government measures to save energy and cut harmful emissions would also increase the price of water, natural gas and refined oil. Higher labor costs would also play a part in price rises, it said.

    China’s CPI soared to a 25-month high of 4.4 percent year on year in October, the National Bureau of Statistics said earlier this month.(Xinhua)