China's consumer price index (CPI) growth is likely to be kept under 4 pct for 2007, the official Xinhua news agency reported, citing Yao Jingyuan, chief economist of the National Bureau of Statistics.

The CPI was up 4.4 percent year-on-year in June. In the first half the CPI rose 3.2 pct, up 1.9 percentage points from a year earlier.

Prices for food rose 7.6 pct year-on-year in the first half, with grain up 6.4 pct, eggs up 27.9 pct, and meat and poultry and related products up 20.7 pct.

Yao said rising prices of most food products are 'structural' due to rising costs, seasonal factors or natural disasters.

Supply shortages only apply to pork, with overall supply of other foods always stays above overall demand, he said.

With macro-control measures applied in the second half of the year, growth in food prices will ease, keeping CPI growth under control below 4 pct, he added.
 
(CRI August 6, 2007)