China's annual rate of consumer inflation ticked up two percent in August from July's 30-month low of 1.8 percent, official data shows, complicating efforts by the government to revive growth with further stimulus measures.
A jump in food prices pushed China's inflation rate in August.
Food prices rose 3.4 percent from a year earlier, picking up from the previous month's 2.4 percent growth. Meanwhile non-food prices inflation dropped to 1.4 percent versus 1.5 percent in July. An analysts say food inflation will continue to be a concern in coming months.
China's producer price index, a gauge of inflation at a wholesale level, dropped a steeper 3.5 percent in August from a year earlier, compared to forecasts for a 3.2 percent decline. It marks the sixth straight month of producer price deflation, putting a further squeeze on corporate profits already dampened by a drop-off in demand at home and abroad.
China's economic growth has slowed for six straight quarters and analysts expect the trend to extend to a seventh quarter.
(CNTV.cn September 10, 2012)