China's inflation is expected to ease in 2012 amid weaker commodity demand and tough monetary policy. The CPI is likely to increase by 3.5% in 2012, according to report of the Bank of China. However, analysts urge the long-term inflation pressure will remain thus forcing the government to continue its prudent policies. The GDP is expected to expand by 8.8% this year after 9.1% increase in Q3 of 2011, the bank added.