China`s July CPI could reach new high

Several economic institutions are warning that China's consumer price index, could reach a new high in July. And it could surpass the country's 3 percent alert level.

Peking University's China Center for Economic Research expects CPI to rise more than 3 percent in July, and in the third quarter this year. The Bank of Communications, one of China's major commercial banks, also predicts CPI to rise higher in the near future. But it believes the increase could slow later this year.

Experts say the increase is due to higher prices of meat and vegetables in July, compared with May and June. China's CPI has fluctuated this year, and surpassed 3 percent in May.