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China inflation rises to 2.7 percent in June

  |   July 9, 2013 at 1:41 AM
BEIJING, July 9 (UPI) -- China's inflation rose to 2.7 percent year-on-year in June from 2.1 percent in May, the National Bureau of Statistics reported Monday.

The increase was blamed largely on higher food prices.

However, the increase in the consumer price index, the main gauge of inflation, was below the government's target of 3.5 percent for the whole year, China's Global Times reported.

Food prices in June jumped 4.9 percent month on month.

The Wall Street Journal said while the 2.7 percent rate in June topped economists' estimate of 2.5 percent, it still is moderate enough to let policymakers introduce measures to stimulate growth.

"Inflation isn't the major matter in China – the balance of risk is on economic growth," economist Tim Condon at ING told the Journal. He, however, said the latest numbers may not produce a policy change if economic growth maintains its current trend.

The report said some economists said consumer inflation may go up in the coming months but would still be at tolerable levels.

China's wholesale inflation as shown by the producer price index fell 2.7 percent year-on-year in June, compared with a decline of 2.9 percent in May.

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