August 9, 2011 2:35 PM

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China inflation rises more than expected

Inflation in China was higher than expected in July, despite a series of efforts by the government to rein in prices. The National Bureau of Statistics said consumer prices in July rose 6.5 per cent compared with the same month last year. The rise comes even as China's central bank has raised interest rates five times since October 2010 in a bid to control prices. Rising consumer prices have become a hot political issue in China. Chinese authorities have said that controlling price rises is their top priority. However analysts say the current of the global economy may put the authorities in a difficult position.

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