Xinhua quoted analysts said ahead of official data to be released on Tuesday that last month inflation rate is expected to exceed 6%driven by stubbornly high food prices.

According to forecasts by several domestic securities firms, July Consumer Price Index a main gauge of inflation is likely to exceed June three year high of 6.4%.

The Shanghai based Shenyin and Wanguo Securities estimated that the CPI grew by 6.7% last month, 0.3 percentage points higher than that of June mainly due to rapidly rising food prices.

The company said prices for commodities and housing will still be the main focus of China macroeconomic control policies. China Industrial Bank Co Ltd also said the index will grow by about 6.5% in July, adding that it may grow even more over the course of the year.

Mr Lu Zhengwei chief economist of financial markets at CIB said it will be a huge challenge for China to bring its CPI back fewer than 5% this year. He said that he expects an interest rate hike in August while the central bank's reserve requirement ratio will remain unchanged.

However, some analysts foresee a turning point coming in the months ahead.

(Sourced from Xinhua)