The core Consumer Price Index, excluding the volatile food and energy sectors, rose 0.3% in June for the second straight month.

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The consumer price index for January was unchanged on the month, but increased by 0.3% excluding volatile food and energy costs.

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For example, the chart below shows how the food and non-food consumer price index (CPI) have declined on a year-over-year basis over the past several months.

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Lu suggested the government adjust the basic living allowance and food subsidies for university students every three months according to changes in the consumer price index.

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Andy Rothman , the China Macro Strategist for CLSA Asia-Pacific Markets, believes that China is near the peak in food-price inflation and close to the peak in the overall rise in the Consumer Price Index for this cycle.

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