China’s consumer inflation edged up to a four-month high of 2.5% in May while factory price deflation eased, reinforcing signs of stabilisation in the economy.
Still, inflation remained well within the governments’ comfort zone, giving Beijing ample room to step up targeted policy support if necessary to ward off any threat of a sharp economic growth slowdown.
China’s consumer price index (CPI) rose 2.5% in May from a year earlier, quickening from a 1.8% rise in April. The number slightly exceeded market expectations of 2.4 percent, data from the National Bureau of Statistics showed on Tuesday.
Food prices rose 4.1% in May from a year earlier, quickening from April’s 2.3% rise, the data showed.
Month-on-month, consumer prices rose 0.1% versus a forecast for a 0.1% fall.