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Chinanews, Beijing, Nov. 6 - A latest report predicts that in China, CPI in cities will continue to rise in future. It is expected that CPI growth will reach its peak level of 7.68% during the second quarter of next year, and then start to fall. The report also predicts that inflation rate will reach 4.72% this year and 7.34% next year.
The report, titled "Chinese Macroeconomy Prediction and Analysis for the Third Quarter of 2007", was released over the weekend. According to this report, GDP growth rate will fluctuate with a declining trend from the fourth quarter of this year till next year. The report predicts that this year, GDP growth rate will reach 11.8% and decline to 10.8% next year. It also predicts that CPI in cities will continue to rise and reach the peak level of 7.68% during the second quarter of next year. The report was jointly1 released by Tsinghua University's Chinese and World Economy Research Center and the Economic Research Center of the Hong Kong University of Science and Technology. In the report, the two research institutes predict that Chinese macro economic operation will reach its peak this year, that China's GDP growth rate will reach 11.79% during the fourth quarter of this year, and 11.8% for the whole year. Starting from next year, the GDP growth rate will start to slow down. Its growth rate for the four quarters will reach 11.59%, 11.32%, 11.01% and 10.81%, respectively, and the average rate for the whole year will reach 10.8%, one percentage point lower than that of this year. The report predicts that both China's export growth rate and that in fixed2 assets investment will also decline quarter by quarter next year. It predicts that the export growth rate will reach 25.7% this year and decline to 20.9% next year. The growth rate in fixed assets investment is expected to reach 26.9% this year and fall to 24.1% next year. At the same time, import trade will increase by 20.3% this year and further by 26.8% next year.
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