BEIJING--China's factory gate prices fell at a slower pace in July thanks to recovering market demand and global commodity prices, while the nation's consumer inflation picked up due to higher food prices.
China's producer price index dropped 2.4% in July from a year earlier, narrowing from a 3.0% decline in June, the National Bureau of Statistics said Monday. A poll of economists by The Wall Street Journal had predicted the gauge of industrial prices would drop 2.6%.
China's consumer price index in July picked up 2.7% from a year earlier, compared with June's 2.5% rise, as recent pork price increases and floods in southern China drove up food prices. The economists' poll had forecast inflation at 2.7%.
Demand for pork has been rising as the catering industry recovers, said Dong Lijuan, a senior statistician at the NBS in a separate statement. She added that floods in many parts of the country, which disrupted transportation, had curtailed pork supply.
Food prices rose 13.2% last month, up from a 11.1% increase in June. Non-food prices stay flat compared with a year ago, after June's 0.3% increase.
China's pork-price inflation accelerated slightly in July. Pork prices rose 85.7% compared with the same period a year earlier, up from a 81.6% increase in June. Pork prices boosted headline CPI by about 2.32 percentage points.