China's inflation increases yet tame

China’s consumer prices rose more than expected in April, Bloomberg reported. According to China’s National Bureau of Statistics, CPI increased 2.4% last month, higher than an estimate of 2.3% compiled by Bloomberg News. The producer price index fell 2.6% following March’s 1.9% decline. Because inflation is below the government’s target of 3.5%, the government has some leeway to raise utility prices. Bloomberg reported that food prices and Beijing taxi fares were set to rise. Food prices rose 4% year-over-year in April, while the base fare for a taxi is set to rise to US$2.10 (RMB 13).