China today announced inflation data during the month of July, which witnessed a significant recovery on the part of consumers to push inflation rates to their highest levels since last April, despite the continued decline in the producer price index.
The annual consumer price index in China rose by 2.7%, after the previous reading of 2.5%, and expectations were for a rise of 2.6%.
Food prices rose at the highest level in three months, by 13.2% from 11.1%, while non-food prices were steady from a previous increase of 0.3%.
On the other hand, transportation costs decreased by 4.4%, and the rent, fuel and utilities index decreased by 0.7%, which helped to recover monthly inflation rates by 0.6%, the first increase in the monthly consumer price index in five months.
As for the producer price index, which measures inflation rates from the producer point of view, it decreased during the month of July at the annual level to -2.4% after a previous negative reading of 3.0% and expectations were for a decrease of 2.5%.
The Chinese yuan fell to around 6.97 per US dollar on Monday after the local trading price was set at 6.9649. Tensions between the United States and China have escalated again after Beijing said it would impose sanctions on a group of senior American politicians after Washington moved last week to impose sanctions on 11 Chinese officials.