China's consumer price index, a main gauge of inflation, is likely to continue to recover as the upcoming holidays of the Mid-Autumn Festival and National Day are expected to boost market demand for food and services, the National Bureau of Statistics said on Friday.

A lower comparison base will also help the country's CPI to further pick up, Fu Linghui, an NBS spokesman, said at a news conference. "Domestic demand is steadily recovering, and the supply-demand relationship is expected to continue to improve."

The country's CPI resumed positive growth on a yearly basis in August, which Fu attributed to increasing services prices and a narrower decline in the prices of industrial consumer goods.

(Source: chinadaily.com.cn)