China’s inflation rate gathers pace in July

| August 9, 2011 | 0 Comments

Inflation in the world’s second largest economy remained at a 3-year high in July, despite several attempts by the country’s Government to contain prices.

The People’s Bank of China has hiked interest rates five times since last October in a bid to combat stubbornly high inflation.

Many other central banks in Asia have adopted the same measures due to rising inflation.

Consumer prices rose by 6.5% in July on an annual basis – the fastest pace since June 2008 when it stood at 7.1%, according to the National Bureau of Statistics.

However, analysts now believe inflation has reached its peak and will fall back during the remainder of the year as policy measures take effect.

Inflation fears are always a concern to Chinese officials due to the potential for price rises to trigger civil unrest.

The country’s Government has previously said it will make reining in prices its top priority.

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