Commodity Prices Won't Keep on Rising: Think Tank

China's commodity prices won't keep on rising despite the surging consumer price in the past months, said report of the Development Research Center of the State Council.

Consumer price inflation in China accelerated to its highest level in more than 10 years as food prices continue to rise, official figures released on Monday showed, raising the pressure for the fourth interest rate hike this year.

The Consumer Price Index (CPI), a barometer of inflation, grew 5.6 percent in July, after a 4.4 percent rise in the previous month, the National Bureau of Statistics said in a statement on its website.

However, viewing the general supply and demand of the society, there is no foundation for the commodity price to continue climbing, said the Development Research Center of the State Council in a report. Although consumption and exports are flourishing, and strong demand exists in both the domestic and overseas market, the supply of products, especially non-agricultural products, has a big rising potential. China enjoys advantages in terms of labor, capital, and technology. Meanwhile, enterprises are capable of making quicker responses to the changing market. So China has the ability to ensure a sufficient product supply.

The rising of CPI is mainly caused by the increase of food price. The recent food price rise appears in the background that agricultural production is experiencing sound development. Presently, China's ability to produce food can be trusted. Under the regulation by market price, the supply of meat, eggs and other subsidiary foods shows a big rising momentum. Food prices will not keep on rising too fast, the report said.