China's Consumer Price Index (CPI) rose by 2.1 percent year on year in April, while the official Producer Price Index (PPI) increased by 8 percent in April, a slowdown from the previous month. The CPI pick-up was mainly driven by the food price component, and it will rise further. Meanwhile, the PPI will continue to moderate in the second half of the year. The gap between the CPI and PPI will continue to narrow going forward, says Zhu Haibin, chief China economist of J.P. Morgan.