BUSINESS

China's inflation stalls at 2.3 per cent, still below government's goal

The Associated Press Published Saturday, August 9, 2014 7:22AM EDT

A fruit vendor attends to a customer in Beijing, China, Saturday, Aug. 9, 2014. China's consumer price index rose 2.3 per cent in July from a year earlier, well below the ruling Communist Party's 3.5 per cent target for the year. (AP/Ng Han Guan)

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BEIJING -- China's consumer price index rose 2.3 per cent in July from a year earlier, well below the ruling Communist Party's 3.5 per cent target for the year.

The latest inflation rate was unchanged from June, according to data released Saturday by the National Bureau of Statistics.

The rise in the index was driven largely by higher food prices, which increased by 3.6 per cent. Prices for fruits and eggs rose the fastest.

Experts expect the inflation to stay stable this year, leaving room for interest rate cuts or other measures to stimulate the economy if necessary.