12 Jun 2010

Chinese inflation rate exceeds target

7:56 pm on 12 June 2010

The inflation rate in China has exceeded the government's target of 3%.

The National Bureau of Statistics said the annual rate of consumer price inflation rose to 3.1% in May.

The BBC reports producer price inflation - the cost of goods at the factory gate - hit 7.1%.

But industrial output has slowed. Output from factories and workshops rose 16.5% in May from a year earlier but that was down from 17.8% in April.

Urban fixed investment - a measure of construction of houses and factories - also slowed in May, while bank lending fell 17% on the previous month.

Trade figures issued on Thursday show that Chinese exports in May jumped nearly 50% from a year ago.