China CPI ticks up more than expected in July

Consumer price inflation accelerated more than expected in July, according to figures released on Friday by the National Bureau of Statistics.

The consumer price index ticked up to 0.5% year-on-year, from 0.2% in June, coming in ahead of consensus expectations of 0.3% growth.

On a monthly basis, CPI was up 0.5% in July following a 0.2% decline a month earlier and versus expectations of 0.3% growth.

Lynn Song, chief economist Greater China at ING, said: "Conditions are in place to see inflation trend a little higher in the coming months but it should not impede further monetary easing. With low inflation and weak credit activity, domestic factors continue to favour further monetary policy easing.

"We continue to look for at least one more rate cut this year with the potential for more if global rate cuts accelerate."