According to the National Bureau of Statistics, China's CPI exceeds market expectation whereby it increases 3.1% year-on-year in September and rises 0.8% compared to August. However, the short-term surge is by chance due to the impact of base effect. CPI is presumed to reach the higher level of 3.5% again at the end of the year and early next year, and will challenge the effectiveness of the macroeconomic regulation.