China inflation rose 2.7 per cent in July, driven by higher food costs

China’s consumer price index (CPI) rose 2.7 per cent from a year earlier in July, up from a 2.5 per cent gain in June

China’s producer price index (PPI) fell 2.4 per cent year on year in July after declining 3.0 per cent in June

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China’s producer price index (PPI) fell 2.4 per cent year on year in July after declining 3.0 per cent in June. Photo: Xinhua

Published: 9:40am, 10 Aug 2020Updated: 10:35am, 10 Aug 2020

China’s inflation rate rose 2.7 per cent in July, up from the 2.5 per cent gain in June, data released on Monday showed.

The rising consumer price index (CPI) was slightly worse than the inflation rate of 2.6 per cent expected by analysts.

Pressure on China’s manufacturing sector following the impact of the coronavirus pandemic, meanwhile, eased slightly in July as the producer price index (PPI), reflecting the prices that factories charge wholesalers for their products, fell 2.4 per cent year on year, data from the National Bureau of Statistics (NBS) showed.

That was a smaller drop than June’s reading of a 3.0 per cent decline and better than the 2.5 per cent contraction tipped by analysts in a survey by Bloomberg.

As catering service gradually recovered, the demand for pork increased persistently. Meanwhile, the flood disaster affected the transport of pigs, causing a relatively tight supply

Dong Lijuan

Within CPI, food prices rose 13.2 per cent year on year, with pork up 85.7 per cent. The price of pork in July rose 10.3 per cent from June.