China's economic growth rate for the whole year is expected to reach 9.2 percent, with the consumer price index to increase about 2 to 2.5 percent, Ha Jiming, chief economist with the China International Capital Corporation Limited, told the China Securities Journal in an interview.

The price level for raw materials, however, will rise at a faster rate, said Ha, estimating the Producer Price Index (PPI) to grow at an rate between 4 to 5 percent this year.

Ha attributed the corporate profit decrease in the first half of this year to the price hike of raw materials, overcapacity in some industries, strict regulations in some overheating sectors and the low price level of industrial products.

Although the country's gross domestic product (GDP) grew 9.5 percent year on year in the first half year, profit rates in many industries slipped during the period, beyond many people's expectations.

For instance, the total profit of China's machinery industry in the first six months this year stood at 86.36 billion yuan (about 10.6 billion US dollars), decreasing 9.05 percent year on year.

If there is no deflation in the latter half of the year, the corporate profit level will gradually resume to regularity, Ha said, noting that the government will continue its steering of monetary and fiscal matters.

Source: Xinhua