Inflation in China rises to the highest level in two years

Inflation in China rose in July to a two-year high, although weak consumer demand kept overall price pressures in check.

The data of the National Bureau of Statistics released today, Wednesday, showed that the consumer price index rose by 2.7% on an annual basis during July, while it was expected to rise by 2.9%, but it was higher than the rate of 2.5% recorded in June.

This is with the increase in total food prices by 6.3% in July on an annual basis, and the increase in the prices of fresh fruits and vegetables by 16.9% and 12.9%, respectively, compared to last year.

On the other hand, the Producer Price Index slowed from 6.1% in June to 4.2% in July due to lower commodity prices.