From The New York Times:

Steeply rising food prices pushed inflation in China to 5.6 percent last month, the fastest pace in a decade, government figures showed today, prompting renewed concern about whether inflation would spread more widely in China and abroad.

The surge in consumer prices last month pushed inflation past its peak of 5.3 percent in July and August 2004, when Beijing officials responded by imposing sometimes drastic administrative restrictions to slow what appeared then to be an overheating economy. [Full Text]

Read also Consumer Price Index (CPI) Kept Expanding in July by National Bureau of Statistics of China:

In July, consumer price index rose by 5.6 percent over the same period of the previous year. Of which, urban area and rural area was up by 5.3 percent and 6.3 percent respectively; the price of foodstuff, non-foodstuff, consumable and services expanded 15.4, 0.9, 6.9 and 1.6 percent respectively. Compared with June, CPI increased 0.9 percent.

In terms of different categories, the price of foodstuff increased 15.4 percent year-on-year. Of the total, the price of grain was up by 6.0 percent; that of oil or fat, meat, poultry and their products, fresh eggs, aquatic products, fresh vegetables and flavoring rose by 30.1, 45.2, 30.6, 5.4, 18.7 and 4.5 percent respectively; while that of fresh fruits correspondingly dropped 12.2 percent.

The price of tobacco, liquor and articles jumped by 1.8 percent over the same period of the previous year. Of which, the price of tobacco and liquor rose 0.9 and 3.6 percent respectively.

The price of clothing was down by 0.6 percent year-on-year. Of which, the price of garment dropped 0.6 percent.

The price of household facilities, articles, and maintenance services rose by 1.7 percent year-on-year. Of which, the price of durable consumer goods rose by 1.3 percent, and that of household services and manufacturing upkeep surging 6.6 percent.

The price of health care and personal articles increased 2.2 percent year-on-year. Of which, the price of western medicines decreased 0.9 percent; that of traditional Chinese medicinal materials and medicines was up by 10.0 percent; and that of health care services shot up by 2.3 percent.

The price of transportation and communication dropped 1.3 percent. Of which, the price of transportation facility dropped 2.3 percent; that of fuels and spares decreased 1.4 percent; that of using and upkeep fare rose by 2.1 percent; that of intercity traffic fare rose by 2.7 percent; that of urban traffic fare increased 0.7 percent; and that of communication facility fell 18.2 percent.

The price of recreational, educational and cultural articles decreased 1.2 percent. Of which, price of tuition and child care decreased 0.7 percent; that of teaching materials and reference books dropped 0.7 percent; that of expenditure of culture and recreation increased 3.2 percent; that of tourism and outgoing was up by 1.6 percent; and that of cultural and recreational articles dropped 0.5 percent.

The price of articles related to residence expanded 4.4 percent over the same period of the previous year. Of which, price of water, electricity and fuels, building and decoration materials, and renting was respectively climbing 3.4, 4.7 and 3.9 percent.

From January to July, the general level of CPI increased 3.5 percent, year-on-year.

[Image: (cropped) Market in Nanjing, east China’s Jiangsu province, August 13, 2007, via Reuters/Sean Yong/IHT).]