CPI reaches 6.5%, rate hike likely

China's consumer price index (CPI) rebounded to 6.5 percent in October, matching the peak decade high in August, the National Bureau of Statistics said yesterday.

The CPI, a key gauge of inflation, grew 6.2 percent in September.

Food prices, up 17.6 percent year-on-year, are the major factor behind the resurging CPI. Prices of fresh vegetables rose sharply in October, too - nearly 30 percent year-on-year. And that is a new trend.