Overall inflation remains modest. May CPI rose by a sharp rebound base effect, the chain rose still modest, PPI deflation continued. Prospects look, pork prices and rising international food prices will push up short-term rise of the CPI increase, but more important factor in determining the "pig cycle" and the long-term trend of food prices, monetary growth and aggregate demand expansion efforts. In monetary growth rebounded slightly, the expansion of aggregate demand is still weak trend, CPI inflation is expected to moderate in the second half rebound, PPI difficult to get out of deflation.

Directional loose noticed. May economic growth has stabilized, showing signs of recovery in external demand, consumption increased steadily, infrastructure investment growth rebounded sharply in recent policy support. However, real estate sales and investment remained weak, and dragged manufacturing investment and imports. Real estate investment is expected to continue down the possibility of the second half of the big. While economic growth will continue to improve the chain in support of policy easing, but by last year the growth rate will decline slightly base effect.

Policy easing will continue the current trend of orientation. Easing of monetary conditions in the near future under the policy orientation of improved inter-bank interest rates are expected to remain low. The recent strength of the RMB exchange rate, on the one hand reflects the stabilization of economic growth and trade surplus expanded fundamentals, it also reflects the intention of the central bank intervention to increase bilateral RMB exchange rate fluctuations. Short-term policy is unlikely to fully relax, but will continue to implement targeted easing measures.