We expect CPI inflation to rise further in Q4 and see rising risks that it may rise above 3.5 percent for some months in 2014, said Zhiwei Zhang, China...

We expect CPI inflation to rise further in Q4 and see rising risks that it may rise above 3.5 percent for some months in 2014, said Zhiwei Zhang, China economist at Nomura in Hong Kong. Inflation has now topped the guideline rate that China's central bank sets for bank deposit rates, which is 3% for one year. That leaves Beijing with little room for policy easing because lowering interest rates could further hurt consumers with money in the bank.