July CPI up 0.5 yy vs June 0.2, PPI 0.8 yy vs June 0.8
CPI uptick comes as Beijing boosts support for weak consumer sector
Overall data outcome backs expectations for more stimulus
Strain on exports, soft domestic demand raise policy challenge

BEIJING, Aug 9 Reuters China39;s consumer prices rose at a slightly fasterthanexpected rate in July partly due to weather disruptions to food supplies, while producer deflation persisted, keeping the country39;s underlying consumption trends soft in a test for policymakers.

China39;s frail consumer sector has been a major focus for Beijing as weak domestic demand hobbles the world39;s secondbiggest economy while manufacturing activity shrinks.

The consumer price index CPI edged up to a fivemonth high of 0.5 yearonyear in July, versus a 0.2 rise in June, the National Bureau of Statistics NBS reported on Friday, beating a 0.3 increase in a Reuters poll of economists.

On a monthonmonth basis, the CPI rose 0.5 against a 0.2 fall in June and a forecast 0.3 increase.

High temperatures and rainfall in some areas last month pushed up food prices, partly contributing to the monthly return to growth, said NBS statistician Dong Lijuan.

Food prices swung from a drop of 2.1 onyear in June to an unchanged outcome in July when they also grew 1.2 monthonmonth versus a drop of 0.6 in June.

There39;s a sharp contrast between food and exfood CPI… none of the other goods and services saw inflationary moves, suggesting no sign of a pickup…