Business

China inflation hits highest level in over a year

BEIJING : Inflation in China rose to its highest level in more than a year last month, driven by surges in pork and fruit prices caused by the African swine fever epidemic and bad weather, official data showed yesterday.

But while prices are increasing, demand remains weak because of economic uncertainty.

The consumer price index - a key gauge of retail inflation - hit 2.7 per cent, the National Bureau of Statistics (NBS) said, compared with 2.5 per cent in April and the highest since February 2018.

The data was in line with a forecast of analysts polled by Bloomberg News.

The rise was "largely the result of renewed acceleration in food price inflation", and pork supply disruptions caused by African swine fever, Capital Economics said in a note.

The producer price index, an important indicator of domestic demand, hit 0.6 per cent last month, from 0.9 per cent the previous month.

Economic "growth could slow further on escalating US-China trade tensions", Nomura International said in a note.- AFP

BUSINESS & FINANCE