China CPI hits two-year high on rising pork prices

Inflation in China hit a two-year high in July, driven by surging pork prices, according to official data released Wednesday.

The headline consumer price index rose by 2.7% in July, missing forecasts of a 2.9% increase. Pork prices rose 20.2% year on year - the first increase since September 2020.

Fresh fruit and vegetable prices also jumped in July, up by 16.9% and 12.9% from a year ago, respectively, according to the National Bureau of Statistics.

Producer price inflation, meanwhile, slowed to 4.2% in July from 6.1% in June as commodity prices weakened.

Core inflation, which excludes the volatile prices of food and energy, slowed to 0.8% in July.

Reporting by Frank Prenesti at Sharecast.com