China Inflation Hits 6.5 Percent

China's consumer price index (CPI), a key gauge of inflation, rose 6.5 percent in July year-on-year, driven mainly by soaring food prices which climbed 14.8 percent from a year earlier, says the National Bureau of Statistics (NBS).

 

China's Producer Price Index (PPI), an economic indicator of inflation at the wholesale level, jumped 7.5 percent year-on-year in July, according to the NBS. Analysts say that falling commodities prices may help relieve imported inflationary pressure, says the China Daily.

 

Economists forecast that the CPI will stay above 6 percent in the third quarter.

 

"This means that inflation, instead of an economic slowdown, remains the major risk," Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC, told the newpaper.

 

 

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