WORLD
China inflation hits 6.5 percent in July
Baku, August 9 (AZERTAC). China`s inflation rate jumped to 6.5 percent in July, the government said Tuesday amid plunging global stock prices.
The July consumer price index, the main gauge of the country`s inflation, was up from June`s 6.4 percent and a hit a 37-month high, the National Bureau of Statistics said.
The announcement comes as markets around the world teeter in response to economic shocks including the downgrading of U.S. debt to double-A+ from triple-A by Standard & Poor`s, growing concern about the debt crisis in Europe and the fear of a double-dip recession.
July inflation was blamed on surging food costs, the state-run Xinhua news agency reported, adding the high inflation puts the government in a tough position with worsening global liquidity in sight.
China`s Inflation has remained stubbornly high and far above the government`s target of 4 percent, despite numerous measures by its central bank.
Food costs rose by 14.8 percent in July from a year ago, with the price of pork, a staple food in China, soaring 57 percent in July.
Separately, the Producer Price Index, which is used to calculate inflation at the wholesale level, jumped 7.5 percent year-on-year in July.