Consumer inflation in China accelerated in July to the highest level in two years as pork prices rose, National Bureau of Statistics data showed Wednesday.
The Consumer Price Index (CPI) rose 2.7% from a year earlier, the fastest pace since July 2020 and higher than the 2.5% increase in June, but it missed forecasts for a 2.9% gain.
Core CPI, which excludes volatile energy and food prices, remained modest, climbing at 0.8%, compared to the 1.0% rise in June.
The main driver of the pickup in CPI is food inflation with rising 6.3% on a yearly basis from a 2.9% rise in June, while pork prices soared 20.2%.
Meanwhile, producer price inflation (PPI) dropped to 4.2% in July from 6.1% in June as commodity prices dropped due to already slower construction activity. Analysts in a Reuters poll had expected an increase in the PPI of 4.8%.