China's inflation marginally up amid concerns over economy

China's CPI grew 2.7 percent year-over-year in June, up from 2.1 percent in May.

Updated: Jul 09, 2013, 11:48 AM IST

Beijing: China's consumer price index (CPI), a main gauge of inflation, grew 2.7 percent year-over-year in June, up from 2.1 percent in May, amid concerns over the slowdown of the world's second largest economy.

The 2.7 increase was below the government's full-year target of 3.5 percent, the National Bureau of Statistics said on Tuesday.

The NBS attributed the acceleration mainly to rises in food prices, which surged 4.9 percent month-on-month in June.

The rise was slightly above the market forecast of around 2.6 percent, according to Tang Jianwei, a senior analyst on macroeconomics at Bank of Communications.

On a monthly basis, the growth of the CPI in June edged up 0.6 percentage point from May, compared to a decline of 0.3 percentage point in May from April.

The data also show that China's producer price index (PPI), which measures wholesale inflation, fell 2.7 percent year-over-year in June, marking the 16th straight month of decline and pointing to continued weak market demand, state-run Xinhua news agency reported.

The PPI fell 2.9 percent year on year in May, marking the steepest drop in seven months.

China's economic growth eased to 7.8 percent last year, the slowest since 1999. It slowed down to 7.7 percent in the first quarter of 2013 from the 7.9-percent expansion logged in the fourth quarter of last year.

Data for the second quarter will be unveiled on July 15 amid speculation of further slowdown.