Chinese inflation accelerated in July as consumer prices rose 6.5 per cent from a year earlier, up from 6.4 per cent in June and the fastest increase since June 2008.
The price rise was driven mostly by volatile and politically sensitive food prices, which soared 14.8 per cent in July from a year earlier, up from a 14.4 per cent annual increase in June, according to data released by China’s National Bureau of Statistics on Tuesday.
But despite the acceleration most economists expect inflation to have peaked in July and to gradually moderate from now until the end of the year.
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