China's inflation jumped to 2.5% in May, driven by higher food prices, according to the latest government data. The rate of inflation is now at a five-month high, the figures showed.
However, inflation is lower than the Communist Party's target of 3.5% for 2014. Analysts believe China’s ruling party will introduce interest rate cuts or other measures to stimulate the economy.
Inflation for the month of May rose 0.7% on the previous month, assisted by a 4.1% increase in food prices. Julian Evans-Pritchard of Capital Economics said, "We don't expect inflation to get out of hand this year.”
Economic growth decreased by 0.3% to 7.4% for the quarter to March 31 from the previous quarter’s figures of 7.7%. It is expected that growth will slow further in the current quarter.
© 2014 - European Supermarket Magazine
