BBC News

China's inflation rate rises to 2.7%

image captionRising consumer prices have been a concern for Chinese policymakers in recent times

China's inflation rate rose by more than expected in June, increasing to 2.7% from 2.1% the month before.

Food price inflation was 4.9% in June, compared with 3.2% in May, with rising pork prices partly to blame.

While the headline inflation number was above analysts' expectations, it remains below the government's target figure of 3.5%.

Analysts say the latest figure reduces the prospect of interest rate cuts in 2013.

Cutting interest rates risks inflating a property bubble, while tightening may put additional pressure on the economy in the middle of the current global economic uncertainty.

Bank of America Merrill Lynch economists Lu Ting and Zhi Xiaojia expect authorities to keep monetary policy neutral with "neither easing nor tightening".

China expects economic growth this year to be 7.5% - which would be the slowest rate in 23 years for the country.

The government is due to release data on gross domestic product for the second quarter of the year on 15 July.

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