China’s annual consumer inflation rose 2.5 percent in May, faster than April’s 1.8 percent rise, data on Tuesday showed.
The May consumer price index (CPI) was just above analyst forecasts in a Reuters poll for a 2.4 percent increase.
"It was largely in line with our expectations for two key reasons," Donna Kwok, senior China economist at UBS, told CNBC. "First of all, the base effect was lower and most importantly, food prices have finally started to rise again. Within that, pork prices in particular have started to rise again as a result of a government’s reserve program which recently kicked in," she added.
(Source: CNBC)