CPI likely to drop in February: NDRC

China's consumer price index (CPI) is likely to continue falling in February, Shanghai Securities News reported Tuesday, citing Zhang Ping, director of the National Development and Reform Commission, China's top economic planning body.

Some positive effects are starting to show after the central government implemented a series of measures to curb the soaring consumer prices, said Zhang. The supply of daily necessities, such as grain, cooking oil and vegetables, is abundant, the director said, adding that the price pressure on key agricultural products is also easing.

He pointed out that the government is capable of stabilizing prices because the supply of most industrial products, and grain, is abundant. Zhang also called for local governments to boost food production by safeguarding the supply of agricultural products and pushing the price reform of resource products and environmental protection fees, the report said.

The country's CPI, a main gauge of inflation, showed a lower-than-expected 4.9 percent increase in January, according to data from the National Bureau of Statistics.

source:Chinadaily