Published on 09.08.2011

Inflation Climbs in China on Higher Food Prices

HONG KONG — Inflation in China accelerated last month to its fastest pace in three years, with consumer prices up 6.5 percent from a year earlier mainly as a result of rising food prices.

Further price increases could be on the way. The National Bureau of Statistics announced in Beijing on Tuesday morning that producer prices, which are primarily wholesale prices measured at the factory gate, were 7.5 percent higher in July than a year ago.

Jing Ulrich, the chairman of China markets at JPMorgan Chase, said in a research note that inflation could peak soon in China and then decline. The increase in consumer prices last month was slightly higher than expected while the rise in producer prices was a little smaller than expected.

Full article at NYTimes.com