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China's inflation rises 2.7% in July

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China's consumer price index (CPI), a main gauge of inflation, grew 2.7 percent year on year in July, staying flat from the figure for June, the National Bureau of Statistics (NBS) announced on Friday.

The figure was lower than market expectations of an increase of 2.8 percent, and remained well below the government's full-year target of 3.5 percent.

The NBS attributed the inflation growth mainly to rises in food prices on a year-on-year basis, which went up 5 percent in July. Food prices weigh about one third in calculation of the CPI.

Yu Qiumei, a senior statistician with the NBS, said China's consumer prices have stayed relatively stable. "Compared on a monthly basis, the July CPI grew 0.1 percent from June, and food prices in July also stayed flat from a month ago," Yu said.

The data also showed China's producer price index (PPI), which measures inflation at the wholesale level, fell 2.3 percent year on year in July. The figure, down 0.3 percent from June, marked the 17th straight month of decline.

China's economy has been stuck in a protracted weak recovery, easing to 7.5-percent growth in the second quarter from 7.7 percent in the first three months and 7.9 percent in the final quarter of 2012.

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