China's May inflation estimated to have risen over 5 pct

By Kim Young-gyo
HONG KONG, June 1 (Yonhap) -- China's consumer inflation is estimated to have grown more than 5 percent for a third straight month in May on the country's soaring food prices, analysts said Wednesday.
In April, China's consumer prices rose 5.3 percent from a year earlier, growing more than 5 percent for the second month in a row despite the Chinese government's continuous monetary tightening.
It was the fourth month that the consumer price index (CPI) exceeded the government's yearly target of 4 percent for 2011.
Shenyin & Wanguo Securities Co., one of the country's largest brokerage houses, said China's CPI had probably grown 5.2 percent last month, while leading investment firm China International Capital Corp. (CICC), put the estimate at a range of 5.3-5.5 percent.
Shenzhen-based Anxin Securities Co. forecast the inflation gauge had reached 5.5 percent.
Many analysts predicted that China will continue to see upward pressure in consumer prices in June and July as food prices in China have been on an upward trend due to a months-long drought that affected a large area of central China.
Shenyin & Wanguo Securities predicted consumer prices will go further up to 5.6 percent in June and to 5.7 percent in July.
"The CPI will continue to be above 5 percent until October," said Li Huiyong, an economist for Shenyin & Wanguo, suggesting it could be difficult for the Chinese government to meet this year's inflation target.
ygkim@yna.co.kr