China August CPI 0.6 yy vs 0.5 in July
August producer prices 1.8 yy vs 0.8 in July
August food CPI 2.8 yy
Demandled reflation not yet on the horizon, says economist
BEIJING, Sept 9 Reuters China39;s consumer inflation accelerated in August to the fastest pace in half a year but the uptick was due more to higher food costs from weather disruptions than a recovery in domestic demand as producer price deflation worsened.
A sputtering start in the second half is mounting pressure on the world39;s secondlargest economy to roll out more policies amid a prolonged housing downturn, persistent joblessness, debt woes and rising trade tensions.
The consumer price index CPI rose 0.6 from a year earlier last month, versus a 0.5 rise in July, data from the National Bureau of Statistics NBS showed on Monday, but less than a 0.7 increase forecast in a Reuters poll of economists.
Extreme weather this summer from deadly floods to scorching heat has pushed up farm produce prices, contributing to faster inflation.
China39;s affected crops due to various natural disasters totalled 1.46 million hectares in August, state media reported on Monday.
The higher CPI in August was due to high temperatures and the rainy weather, NBS statistician Dong Lijuan said in a statement.
Food prices jumped 2.8 on year in August from an unchanged outcome in July, while nonfood inflation was 0.2, easing from 0.7 in July.
But the rebound was softer than expected and did little to ease deflation…