Inflation in China pulled back in August. It was 6.2 percent compared with the same month last year. In July it reach a three-year high of 6.5 percent.
Analysts said inflation will remain elevated for several months well above the government’s target of four percent.
Food prices, which jumped 13.4 percent in August from a year earlier, contributed 4.0 percentage points to August’s inflation level. Non-food inflation in August rose to 3.0 percent from 2.9 percent in July.
At the same time Chinese economic activity slowed which makes it less likely the central bank will raise interest rates further.
Industrial output rose 13.5 percent in August from a year earlier, slowing from 14 percent in July. Retail sales growth eased to 17.0 percent from July’s 17.2 percent.
The People’s Bank of China has raised interest rates five times and lifted banks’ reserve requirement ratios nine times since October