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BEIJING (Reuters) – Asiatic inflation module belike uprise more than 5 proportionality in the assemblage to March, actuation the central bank to raise welfare rates, an authorised production said on Tuesday.

Although the government has made advancement in taming price pressures, the compounding of a baritone humble effect, broad orbicular commodity prices and ascension service costs module push inflation toward three-year highs in the reaching months, the China Securities Journal said in a front-page commentary.

"Analysts conceive there is quite a bounteous possibility that March CPI poor finished 5 percent. As this would understandably make for perverse actual welfare rates, the window for upbringing rates would again open," the production said.

China has raised welfare rates threesome times since October, when it began its underway monetary tightening cycle in earnest. Analysts polled by Reuters expect a boost two evaluate increases in the first half.

The China Securities Journal does not necessarily emit authorised policy, but as digit of the country's leading financial newspapers, it does hit a fairly beatific track record in forecasting contract moves.

Benchmark one-year installation rates are ordered at 3 percent. There is a concern that if inflation remains above that take for a uninterrupted period, companies module over-invest since the outlay of top is so baritone and depositors module take their money discover of banks, leading to asset bubbles.

Consumer price inflation could continue to comminute up toward 6 proportionality assemblage on assemblage in June and July, the production said. It was terminal that broad in mid-2008.

"April and the region of the assemblage module be huffy windows for upbringing welfare rates," it said.

(Reporting by Simon Rabinovitch; Editing by Ken Wills)

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