Inflation Rising Faster Than Expected in China

Fueled by food price increases

Chinese inflation accelerated more-than-expected on food prices in June. Nonetheless, the below-target inflation and negative producer price inflation underscore the economic weakness, providing scope for policy actions.

Inflation accelerated to 2.7 percent in June from 2.1 percent a month ago, areport from the National Bureau of Statistics showed Tuesday. The rate also exceeded the 2.5 percent forecast by economists.