China’s inflation picks up on rise in food costs
BEIJING (AP) — China’s inflation rose to a five-month high of 2.5 percent in May, driven by higher food prices, government data showed Tuesday.
Inflation still is below the ruling Communist Party’s 3.5 percent target for the year, leaving room for interest rate cuts or other measures to stimulate the slowing economy if needed.
May inflation was up from the previous month’s 1.8 percent, boosted by a 4.1 percent rise in food prices.
“We don’t expect inflation to get out of hand this year,” said Julian Evans-Pritchard of Capital Economics in a report.
Economic growth slowed to 7.4 percent in the three months ended March 31 from the previous quarter’s 7.7 percent.
Other indicators suggest growth might slow still further in the current quarter.