Chinese inflation has exceeded the 3 per cent target set by the government for the year, at a time when wage pressures in the economy are intensifying, but other indicators released on Friday suggest that growth in China is slowing.
Consumer price inflation rose to 3.1 per cent in May from 2.8 per cent the month before, while factory gate inflation was also higher at 7.1 per cent, up from 6.8 per cent.
The continuing rise in consumer prices comes as an outbreak of strikes in several industrial areas of the country is raising the prospect of considerable wage inflation in China.
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