CPI up 5.3% in July

China's consumer price index (CPI) rose by 5.3% year on year in July, its highest rise in seven years, according to the National Bureau of Statistics. Analysts expect CPI to continue to rise in the third quarter, driven by food and energy price increases, and then decrease in the fourth quarter. In July, food prices increased by 14.6% and auto fuel prices rose by 9.6%. Analysts said that China's core inflation rate, which excludes food and energy data, was below 1% and showed a more accurate representation of inflation in China.