Rising food prices have catapulted the Chinese inflation

China's inflation rate rose to its seven-month peak in September, mainly due to the increase in food prices and because of some seasonal effects. According to Chinese government statistics, in September, the annual rate of inflation was 3.1 percent, after the 2.6 percent of August. Market analysts expected a 2.9 percent price increase for September.

The rising food prices were responsible for the increase of inflation. In September, food prices prices rose by 6.1 percent on an annual basis. The price increase of fresh vegetables was particularly high, 18.9 percent. Analysts added that agricultural production was lower, because of the adverse weather conditions in China’s southern territories and the seasonal high demand also drove up the price of agricultural products. (MTI Eco, Világgazdaság Online)