On a monthly basis, consumer prices edged up 0.3 percent in July, Xinhua quoted the National Bureau of Statistics (NBS) as saying on Sunday.
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The report said, “Between May 2015 and June 2015, the average cost of goods and services in the Consumer Price Index rose 0.8 per cent. The all-items index climbed to 100.7 index points in June”.
The data showed pork price inflation was the most buoyant in July, with prices surging 16.7 percent due to a sharp fall in hog supplies.
The government aims to keep consumer inflation at around 3 percent this year.
The survey collects prices from more than 63,000 outlets including grocery stores, supermarkets, shopping malls and agricultural trade markets across 500 cities and counties in the country, the NBS says.
For the first seven months, PPI averaged at a 4.7-percent drop year on year.
China’s economic growth in the second quarter came in at 7% year-over-year-better than expected but still the slowest pace in six years.
Subdued inflation has given room for the central bank to cut interest rates four times since November in a bid to cushion the economy’s slowdown.
The index, which tracks the factory-gate selling prices of firms from miners to manufacturers, pointed to persistent weakness in commodity prices and soft demand in China’s economy which are eroding company profits.
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The PBoC has also seen the measures as tools to fight deflation risks.
