THE Consumer Price Index, the main gauge of inflation in China, is likely to rise 4.1 percent in October after accelerating to a 23-month high of 3.6 percent in September, the Bank of Communications forecast yesterday.

The bank, China's fifth-largest lender, said in a report that the index would see moderate dips in the coming two months amid easing demand due to the slowing economy. The report predicts China's CPI would rise 3.1 percent for 2010, topping the government's target to keep the inflation rate under 3 percent.