Yonhap reported that China's consumer inflation is estimated to have grown more than 5% for a third straight month in May 2011 on the country's soaring food prices.

In April 2011, China's consumer prices rose by 5.3% YoY, growing more than 5% for the second month in a row despite the Chinese government's continuous monetary tightening.

It was the fourth month that the consumer price index exceeded the government's yearly target of 4% for 2011.

Shenyin & Wanguo Securities Co, one of the country's largest brokerage houses, said that China's CPI had probably grown 5.2% in May 2011, while leading investment firm China International Capital Corporation, put the estimate at a range of 5.3% to 5.5%. Shenzhen based Anxin Securities Co forecast the inflation gauge had reached 5.5%.

Many analysts predicted that China will continue to see upward pressure in consumer prices in June and July as food prices in China have been on an upward trend due to a months long drought that affected a large area of central China.

Shenyin & Wanguo Securities predicted consumer prices will go further up to 5.6% in June and to 5.7% in July.

Mr Li Huiyong, an economist for Shenyin & Wanguo, said that "The CPI will continue to be above 5% until October 2011."

(Sourced from www.yonhapnews.co.kr)